Exam (elaborations)
Strategic Marketing aug 2020
- Module
- Strategic Marketing
- Institution
- Heriot-Watt University, Edinburgh (HW)
Strategic Marketing aug 2020
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Student IDStrategic Marketing Plan for August 2020
Section 1: ANALYSIS
1.1 Context
B Pharma is a generic pharmaceutical company in Egypt. B was launched in the year 2000
and rose until it managed to be among the top 30 companies sales wise in the Egyptian
market 17 years later. B has a diverse product portfolio of more than 110 human and
veterinary pharmaceutical products in almost 185 dosage forms translating to more than 50
brands with 80 SKUs that will be released over the next 5 years. In 2017, B had a market
share of .9%. In terms of Units, B was the 11th ranked company, achieving sales of over 400
million Egyptian pounds. It has opened an export department and is exporting to more than
20 countries within Africa and Central Asia.
B manufactures its products in its own factory with sterile and non-sterile production lines.
It does not rent or contract production lines. It is compliant with FDA (Food & Drug
Administration), GMP (good manufacturing practice), EMEA (European Medicines Agency),
ICH (International conference on Harmonization)
For the last 3 years, the company continued to lose its position in the market and dropped
to number 44 in the IMS list of the top pharmaceutical companies in Egypt. IMS is an
American company that provided data for the healthcare industry spanning sales, de-
identified prescription data, medical claims, electronic medical records and social media.
Political and economic instability, floating of the local currency and covid-19 are challenges
that B had to go through recently. While it managed to stay in business, it couldn’t keep up
as well as some competitors who rose to the challenge.
Competition is fierce. There are more than 1000 pharmaceutical companies and agents in
Egypt in all product ranges; prescription and OTC (over the counter drugs). Consumers are
internet savvy and more are looking up wikis, health magazines and forums for OTC
products and cosmetics to help with different ailments and needs. B has failed to recognise
and monitor its online presence. B has a website that is at least 2 years out-of-date and I
don’t need to mention that there is no analysis being done for the company’s reputation
and that of its product range.
B has many key stakeholders that should be taken into account:
- B’s Employees, of which there are now more than 1000
- The government, as it encourages the pharmaceutical industry to provide essential
products and ensure their availability year round
- Physicians and vets of different specialities along with clinics and hospitals.
- Suppliers and Distributors
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- Competitors which are both local and International
- Universities around Egypt
- Customers who make use of B’s products and services
1.2 Marketing fit with corporate and business strategy
B knows how to create value and deliver it through a professional sales team who chase
leads and new opportunities for growth. B has a strong portfolio of products, suppliers and
distributors to work with and a fairly good reputation in the market. B recognised the
opportunities overseas and has established relations with agents in more than 20 countries
and more under registration. This will have implications for logistics, operations, marketing
and services, as well as various supporting activities. B has a Tall hierarchy structure as is
common in this industry.
Corporate mission which can be inferred from B’s vision is to become one of the top generic
pharmaceutical companies in the region within the upcoming years through providing
quality products to customers.
Allocating resources is crucial in this case. BCG Matrix model would be very useful here. The
star turned cash cow product for B is Dolphin, taking up 92-95% market share and is the
backbone of the company, providing 70% of the cash flow. While this is a success story, it is
also a very dangerous situation for B Pharma to be in as the pharmaceutical industry is ever
changing and new researches and new FDA regulations could destroy the company in a
fortnight. An FDA regulation coincidently happened 2 years ago “Diclofenac sodium
(Dolphin) is contraindicated for children less than 2 years of age” affected Dolphin
prescription and sales of Dolphin. Then, there are the question mark ‘?’ products as Bclav,
Bvit, those could be invested in to get them to the star category as they have high growth
and high market share. Dogs as in the case of ‘Ulcerostat’ should be sold or repositioned.
SWOT analysis captures company’s strengths and weaknesses in relation to environmental
opportunities and threats:
Strengths Weaknesses
• Reputation of being one of the top • Changing CEO and marketing and
generic pharmaceutical companies sales heads every year for 4 years in
in the market a row
• Large and diverse portfolio of • Lack of financial resources
products compared to some competitors in
• Loyal base of customers who we call the industry
(B men) who advocate B’s products. • Passive aggressive tension between
• Strong base of suppliers and Sales and Marketing department
distributors and between the financial
department
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• Unhealthy competition between
sales team
• Managing stock – there were
periods of product shortage over
the last two years due to failure to
manage and sync supply and
manufacture
Opportunities Threats
• The unstable political and economic • Increased international competition
created as many opportunities as it • Floating currency and economic
did threats. Some businesses are conditions
out of business and ready for us to • Increased pressure to reduce the
take their place as in Vitamin B amount of packaging produced,
product Bvit B12 overtaking Nervidox reduce waste and recycling which
when it was discontinued. will drive up costs in a largely “price
• Room for growth in the current taker” industry
market. The pharmaceutical market o Government regulations
is a growth industry o Consumers pushing for
• Increase of desire for quality drugs organisations to act in an
at competitive prices due to the environmentally friendly way
economic conditions
• International market is ripe with
opportunities
• The relatively new veterinary
branch has a lot of potential and can
use the company’s brand and image
to bolster its success
In terms of Porter’s Generic Strategies, B is not the cheapest offering in a great number of
products but it is competitively priced. It is also following a differentiated strategy and
maintaining focus. It has a point of difference that is valued in customer’s minds (Egyptian
organisation with its own factory and a large portfolio of quality, essential and innovative
products)
Ansoff’s growth strategies can be applied. B has undergone market development through
offering new products that have little competition in the market (Bvit B12 sublingual tablets),
branching out in the MENA region and central Asia. Market penetration is also employed
through chasing new leads and growing its customer base locally and internationally.
Diversification is employed through two fronts;
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