Marketing Management

In

Herbion Pharma Pakistan (Pvt) Ltd.

Introduction of Pharmaceutical Industry of
Pakistan

• At the time of independence, we did not have

any pharma units.
• The establishment of national companies started in 1960s.
• Today, we have 600 pharmaceutical companies
operating in Pakistan, out of which 386 are manufacturing
units.
• Low cost of production and huge potential of
this sector have attracted multinational companies.
• 30 multinationals are currently operating in the country.
• As awareness about health increased, Health expenditures
have been more than doubled in the last 7 years.
Some key statistics of the industry
Companies operating in the industry 600

Number of employees Over 100,000

Registered Drugs 47,000

Registered Molecules 1,100

R&D expenditure 1% of the profit

Average growth Rate 11%

Market share of Multinationals companies 45%

Market share of Local companies 55%

Market Leader GlaxoSmithKline

Major Players in Industry
Names Market Share

GSK 11.60%

Sanofi Aventis 4.10%

Getz Pharma 3.90%

Abbott Lab 3.80%

Roche 3.10%

Merck 2.90%
Pakistan Pharma Industry (Cont’d)

• The raw materials are mostly imported from

China and India. These raw materials are very
much expensive to develop.
• The pharmaceutical industry is highly capital
intensive. Most of the manufacturing machines
are imported from foreign countries.
• The manufacturing side requires its employees to
minimum have bachelors degree.
Research & Development

• In Pakistan, the focus of the research and

development department is on the packaging and
the marketing of the products. Research on
product development is very expensive. Millions
of dollars are spent on developing a single
molecule of a medicine.
Local Demand and its basic driver

• The population of 160 million people is a basic

demand driver. There is an annual growth of 2%
in the population. The declining health conditions
and the burden of diseases demand the local
pharmaceutical industry to produce products that
could cure them.
Herbion Pharma Pakistan (Pvt) Ltd
Introduction

• Founded in 1983, the company started marketing and

distributing its products during 1997 in the Commonwealth
of Independent States (CIS) i.e. former Soviet Union, in
addition to Pakistan. Herbion gradually expanded its
operations to CIS and other European, Far Eastern and
North American markets by focusing on developing a well
established & strong field force network and marketing
structure that eventually paved the way for its success.
Introduction (Cont’d)

• Operating in more than 21 countries. Sales and

marketing network is spread over 4 regions
across the 3 continents of the globe i.e. North
America, Europe and Asia.
 Objectives
• To establish and maintain leadership position in each country of
operation.
• To consistently increase market share in each geographic country.
• To establish our brand image as of high quality products.
• To explore markets in existing and new geographic locations around the
world.
• To become a customer oriented company striving for their satisfaction
• To create a work environment which motivates, recognizes and rewards
achievements at all levels of the organization.
• To be a contributing corporate citizen for the betterment of society, and
to exhibit a socially responsible behavior.
Segments

• Respiratory Care
• Child Care
• Nutrinal Care
• Digestive Care
• Reproductive Care
Products
• LINKUS (Syrup)
• INTELLAN (Capsules & Syrup)
• ALFAGIN
• LINKUS LOR / LINKUS LOZENGES
• NEEMPLAST
• VERONA (Tablets)
• EVICA (Capsules)
• BONJIGAR
• ENTOBAN
• INSTY
• WINNER (Capsules)
SWOT ANALYSIS
STRENGTHS

• Exercise strong strategic planning in achieving

annual goals.
• About 45 distributors throughout Pakistan.
• Captures almost the entire country including Azad
Jammu Kashmir.
• Have strong market position in some cities e.g.
Faisalabad, Peshawar, Quetta and Multan.
• Have high skilled professionals and man power.
• Uses above moderate production technologies.
WEAKNESSES
• One-third of the revenue is generated from some major products,
that is, LINKUS Syrup, ALFAGIN, and VERONA Tablets.
• Having weak market position in major cities e.g. Karachi, Lahore,
and Islamabad.
• Dependent on some products, though number of products is
lesser as compare to other pharmaceuticals companies.
• Number of customers is less.
• No plan to boost R&D
• Operating condition on Peshawar and Mingora is tough.
• Investment portfolio is weak as there are only two projects
primarily, syrups and capsules.
OPPORTUNITIES
• Incredible export potential
• Increasing health consciousness
• New innovative therapeutic products
• Globalization
• Drug delivery system management
• Growing incomes
• Clinical trials & research
• Aging of the world population
• New diagnoses and new social diseases.
• Spreading use of Generic Drugs.
THREATS

• Small number of discoveries

• Competition from MNCs
• High Cost of discovering new products and fewer
discoveries
• Competition, particularly from generic products
Action Plan

• A new project is to be established within three

months, five products will be launched thereof
which will further diversify the portfolio risk.
Thank You