Defining Marketing Management (Theory 2000 – 2010 & Theory 2011 –

2015) relates with Company’s Marketing Management

Definition of Marketing Management (Theory 2000 – 2010)

Marketing management is the art and science of choosing target markets and getting,
keeping, and growing customers through creating, delivering, and communicating superior
customer value.

Definition of Marketing Management (Theory 2011 – 2015)

Marketing management depends on the size of the business and the industry in which the
business operates. Effective marketing management will use a company's resources to
increase its customer base, improve customer opinions of the company's products and
services, and increase the company's perceived value.

According to Square Pharmaceuticals Perspective, Marketing Management is the

organizational discipline which focuses on the practical application of marketing orientation,
techniques and methods inside enterprises and organization and on the management of a
firm's marketing resources and activities.
Globalization has led firms to market beyond the borders of their home countries, making
international marketing highly significant and an integral part of a firm's marketing strategy.
Marketing managers are often responsible for influencing the level, timing, and composition
of customer demand accepted definition of the term.

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Vision Statement
“We view business as a means to the material and social wellbeing of the investors,
employees and the society at large, leading to accretion of wealth through financial
and moral gains as a part of the process of the human civilization.”

Mission Statement
“Our Mission is to produce and provide quality and innovative healthcare relief for
people, maintain stringently ethical standard in business operation also ensuring
benefit to the shareholders, stakeholders and the society at large.”

Business Strategy
Square pharmaceutical Ltd being the market leader of pharmaceutical industry of
Bangladesh follows a unique set of strategies. They did not confine themselves into
only one strategy follower; rather they focused on different generic strategy for
different category of product. So they kind of diversified their portfolio among different
segments of the market.

Cost leadership strategies

We found that square pharmaceuticals follows cost leadership strategies for a specific
set of product category. Because cost leadership strategy is an integrated set of
actions taken to produce goods or services with features that are acceptable to
customer at the lowest cost, relative to that of competitors. Square using the cost
leadership strategy to sell no-frills, standardized products to the industry’s most
typical customers. Square’s products have competitive levels of differentiation in
term of features that they create value for customers. Indeed emphasizing cost
reductions while ignoring competitive levels of differentiation is ineffective.
Square pharmaceutical also carefully examines all support activities to find
additional sources of potential cost reductions. Developing new systems for
finding the optimal combination of low cost and acceptable quality in the raw
materials required to produce the drugs.

Focused Differentiation
Square pharmaceutical limited also focuses on market niche, concentrating

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competitively on a specific market segment. These types of products are usually
charged with premium price and only a few numbers of companies produces or
imports those drugs. In this regard square pharmaceuticals achieved a good
reputation in medicine sector.

Corporate Culture
SPL, with its progressive business outlook, believes and practices corporate work
culture with a classic blend of efficiency and equity. SPL believes in company growth
by increasing efficiency level of employees and for that offering excellent environment
and support for skill and knowledge up gradation. SPL’s Business Motivation is ‘Being
Good by Doing Well’ and to conduct transparent business operations based on market
mechanism within the legal, ethical & social framework with aims to attain the mission
reflected by the company’s vision. It values productivity as the spontaneous
contribution of Human Resources.

Transparency & business ethics is the core value of SPL and it is strictly followed at
every step of the business processes. Every business in SPL is modeled in a way that
enables the management to ensure highest degree of both financial and behavioral
accountability. SQUARE pursues Zero Tolerance policy against all kinds of corruption.
SPL's activity goes well beyond the sphere of business. As socially conscious and
responsible corporate body SQUARE is committed to the improvement of the society as
a whole.

SWOT Analysis of Square Pharmaceuticals Ltd

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Strength Weakness
1. Good Product Quality: Square Pharmaceuticals 1. Aggresive Competitors: The market is growing
believe the quality of the product represents the very fast with new technologies & competitive
brand & have positive impress in the market. So price. So, aggressive competitors are seen in the
they are concern about their quality. market.

2. Uncompromised quality of raw materials: 2. Some essential product price is very high:
They do believe in best quality& they are the The price of some essential product is very high
market leader. So, quality is uncompromised. compare to the market competition. So, It’s a
weakness for Square Pharma.
3. Very skilled& Efficient Pharmacists: As they
are sensitive to quality product so they well trained 3. Insufficient supplier of raw materials:
the employees& hire skilled person. According to demand of the products supply of
raw materials is not sufficient.
4. Competitive price with the one of the best’s
quality product: Square Pharma’s focus is to reach 4. High production cost: Square import some
all level of customers. So as a market leader they machineries& raw materials from abroad. So
follow competitive price with best quality. production cost is very higher.

5. Worldwide recognition They are the No.1 brand

in Bangladesh& the market leader. So world 5. High marketing expenses affect the
recognized them as a best quality brand. company’s margin of scale significantly: They
expense a large volume of money for marketing.
So, margin of scale automatically increase.
Opportunity Threat
1. No 1 company in the pharmaceuticals 1. Competitors are main threat for square: As
industry: They are the market leader with best competition is increasing day by day so it’s a
quality product .It’s an opportunity for Square threat for Square.
Pharmaceuticals Ltd.

2. Worldwide recognition &market leader in the 2. Pharmaceuticals firms are growing largely:
Pharmaceuticals industry in Bangladesh: For the With updated technologies & machineries firms
best quality product with competitive price, they are growing fast& creating threat.
have worldwide recognition.

3. Can develop market value by cutting down 3. Mergers & Acquisitions: Merger &
product price: They have the scope to cut down Acquisitions by other countries may damage this
price for creating market value as they have industry.
established their position in the market.

4. Incredible export Potential: There is possibility 4. Unstable political situation: Our unstable
of great return from international market. political situation hampers the market.

5. Clinical trials & Research: Clinical trial& 5. Regular devaluation of money increasing the
research done through technologies from abroad & cost of export: For Economic downturn money
skilled people’s effort. devaluation creates threat.

PESTEL Analysis of Square Pharmaceuticals Company

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Political Factors Economic Factors
1. Political instability: Political instability 1. Unemployment rate: Huge Unemployment
greatly hampers sales & Business of the overall rate has negative impact on the Overall
Pharmaceuticals industry. Pharmaceuticals industry.
2. Export Import policy: Export Import policy 2. Low labor cost: Lower labor cost effects the
of Government affects the industry as it changes industry to grow. It creates opportunity to export
from time to time. abroad & earn foreign currency.
3. Pricing strategy: Growing Budget & its 3. Exchange rate of foreign currency:
pressure on the Pharmaceuticals industry has Exchange rate of foreign currency has huge
impact. It can create positive or negative impact
impact for changing pricing strategy of the
on market for the product price & other related
product. issues.

Social Factors Technological Factors

1. Demographic features: Demographic 1. Technological Innovation: Increased
features of a country have impact for product Technological innovation creates competition.
strategy. 2. Unreliable power supply: It leads self
2. Health concerns &self awareness: Health generation of power which increases production
concerns &self awareness has great impact for cost.
the Pharmaceuticals industry. 3. Hire technological support: Most of the
3. Increasing population growth: Day by day technologies are hire from abroad which has
population is Increasing as well as the demand impact on the industry.
for the product. So, This is another social factor
to be considered.
Environmental Factors Legal Factors
1. Growing environmental agenda: Growing 1. Legal factor regarding Business: Legal factor
environmental agenda& community has great regarding Business has impact.
impact. 2. Monitoring& supervision role: Monitoring
2. Climate change: Climate changes affects &Supervision is very much needed in the
Power of Suppliers
hugely. Pharmaceuticals industry.
The suppliers have very low bargaining
3. Ecosystem: Concern for ecosystem has a 3. Solving legal queries: Legal issues need to be
power
great impact on the industry. Volume benefits occur solved properly with effectiveness.
Input Standards,
available locally, numerous suppliers,
switching cost low
Porter’s five forces of Square
SuppliersPharmaceutical
can go for forward Integration
Raw material cost constitute more than
50% of the total expenses

5
Barriers to Entry
Industry Competition Threat of substitutes
Very low barriers to entry to
produce pharmaceutical Square pharmacy is highly No substitute for the
products based on economies competitive company medicines
of scale Top five players have mere 18% Demands for pharma
Government policies of market share products continues and
supportive for an entry but Square pharma has low fixed industry thrives
price regulation exists cost and high working capital Pharma industry seems to
Square pharma is the first have an infinite future
mover company,so they have Biotechnology is a threat to
first mover advantage synthetic pharma products
They have large distribution
channel and good relationship
with retailer
Power of buyers

End consumers do not have bargaining power

Brand identity exists but in the hands of
influencers (Doctors)
Price sensitivity is less
Bargaining power of buyer is determined by
the number of buyer relative to number of
supplier
Volume of buyer is determined by volume of
purchase by a single buyer
Highly fragmented market, so buyer
concentration v/s industry is low

Marketing Strategy & Core Marketing Concept + Market Segmentation

6
Market Strategy

Ansupen targets only Niche markets. Because Ansupen is a Product of Square pharmaceutical
which only for the diabetic patients to control diabetics. So Ansupen targets only those people
who are sufferings from diabetics. So Ansupen is under niche market strategy.

Core marketing concepts

Needs, Wants, and Demands

Ansupen is real needs, wants and, demands is as regular basis for the diabetic patients.

Target Markets, Positioning and segmntation

Because of the Ansupen can use for only diabetics so it target those group of patients. So they
identify distinct groups of buyers. After identifying market segments, the marketers decides
which pre3sent the greatest opportunities- which are the target markets.

Offerings and Brands

Insulin needle pens are available in different sizes, brands and prices. Brand name is very
important as Ansupen is from square Pharmaceuticals.

Value and Satisfaction

Customer’s Satisfaction and product value is very important. Ansupen can use several days as
per as doctors recommend to patients.

Marketing Channels

Ansupen mainly marketing through marketing promotion officers (MPO) who are marketed
the pharmaceutical product to the doctors, Influencers ( Doctors) who are prescribed Ansupen
to their patients, hospitals, Pharmacy’s, Billboards and also through TV, magazines, websites
etc.

Supply Chain
Import channels, Pharmacy,s, Hospitals, Distributin channels.

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Completion
Same product is available from different groups of Pharmaceutical. So competition is little bit
high.
Marketing Environment
Marketing environment is all about company, suppliers, distributors, dealers and targeting
customers. Square pharmaceutical product is Ansupen, target only diabetic customers.
Market segmentation

Ansupen marketers have tried to manage the heterogeneity of the market in two ways; patient
segmentation or prescriber segmentation. The first, patient-focused approach recognizes that,
even if they are all suffering from the same condition, patients have varying needs.

These may depend upon disease stage, contraindication, compliance or some other clinically-
recognized criteria and they are used in the majority of segmentation approaches. Patients
may also differ as a result of non-clinical criteria. Ansupen market segmentation considers the
patients behavioral and benefits.

The second, prescriber-orientated approach recognizes that, even when faced with identical
patients, physicians are a diverse group. Perhaps the most common characteristic used to
segment prescribers is their openness to innovation. Innovators and early adopters are often
seen as targets for new products, while the more mainstream physicians gain the attention of
those companies trying to defend their incumbent brands.

Other physician criteria, such as degree of patient empathy or commercial orientation have, in
similar ways, been used to target sales force and marketing communications resources and, in
some cases, other assets such as medical liaison teams. Like all diabetic patients do not need
Ansupen. It depends on patients’ condition and if doctors prescribed.

Segmentation in real life

 By Indications
o Maintenance
o Acute
 By Patient profile

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 o Ethnic background
o Demographic
o Severity of illness
 By physician type
o Specialists vs. Gps
o Hospital vs. private
o Patients economic status
 By dosage form
o Amount varies
o How many times a day
o How much need to inject

Marketing Mix 7P of “ANSUPEN”

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 Product
Brand name
Quality
Price
Safety
Competition Dosage form People
Pricing –
Diabetic-
strategy
patients
Discounts
Doctors
Staffs

7P’S
Promotion Marketing Process
MPO Mix Process- Design
Influencer Self service
International- Availability
Events

Place Physical
Hospitals Evidence
Distribution – Service –
channels Environment
Pharmacies Touch, Smell

Alternate Marketing Mix 4C’s of ANSUPEN

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 Clients Costs
Target Diabetic patients to Consider all costs to
control diabetics. Clients satisfy clients Sometimes
are only diabetic patient. give discounts and
provide free for the
needy people
Alternate

Marketing
Communications
Mix Convenience

Doctors prescribed
Interaction between patients Ansupen. It is
patient and doctors, and available on well known
MPO promoted the pharmacy , hospitals
products. where preservative is
available.

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Value Chain Model

12
Total Quality Management (TQM)

Customer Loyalty
With Mission statement to “produce and provide quality & innovative healthcare relief for
people” Square Pharmaceuticals Limited has already taking one of the leading brands among
the industry. Square pharmaceuticals Limited has demanded that, they are the largest
pharmaceutical company in Bangladesh and it has been continuously in the 1st position
among all national and multinational companies. On the other hand, as they are operating in
Bangladesh from 1958, so they made a strong bond among the customers. Now the question
is about Loyalty. We know Customer loyalty relates to those consumers that keep coming
back to your store because better services than the competitors.
As Square Pharmaceuticals provided their service from 1985, for that reason for few
medicines they made a strong position in their customer mind. On the other hand, they have
a range of sister concern company and every sister concern are providing high quality
services for their target customers. So customers are automatically become loyal customer to
their brand.

Quality & Control

SQUARE is committed to ensure better life through quality medicine. Square
Pharmaceuticals Limited has defined its Quality Policy to fulfill this commitment. To achieve
and maintain a steady quality, a range of sophisticated state-of-the-art technology is engaged
in operation. SQUARE has adopted the latest quality philosophy by organizing a well-
equipped Quality Assurance Department in the plant in addition to Quality Control
Department. Above all highly qualified, well-trained, experienced and dedicated
professionals are most valuable assets of Square Pharmaceuticals Ltd. SPL’s Research and
Development is devoted to improve the health care facility of people. Square Pharmaceuticals
Ltd. has brought in advanced technology for its Research and Development works. To
support Research and Development work latest Information Technology (IT) is available with
us and SQUARE is now fully prepared to meet the challenge of twenty-first century.

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Brand and Branding
Brand is the name, term, symbol and design on the other hand branding is endowing products
and services with the power of the brand. Without creating a strong, it is not possible to create
customer loyalty. As we have mentioned before that square pharmaceuticals has a range of
loyal customer, so we can say they have strong brand position on their target customer mind.

Role of Brand
1. Identify the market: For the product Ansupen square have targeted all the people
from rural to urban area. However, at first they are doing their promotional strategy
to do target with urban people. This is because it is easy to inform them about a high
tech. product.
2. Signify Quality: SQUARE is committed to ensure better life through quality
medicine from 1985. As Ansuoen is their new innovation, so there is no doubt about
that it will provide high quality services than others.
3. Serve Competitive Advantage: SPL’s competitive advantage is availability of
product. Although Ansupen is not that much available in all the area of Bangladesh
Market, So we can say its competitive Advantage is quality services and easy to use
than the competitors.
4. Secure Price Premium: After considering their services and Quality SPL’s product
price is reasonable then the competitors. Although for pharmaceuticals product,
customers are not that much conscious about price, rather they conscious more about
services.
5. Offers Legal Protection: Square Pharmaceuticals have offered highly legal
protecting of their product by doing license.

Colors usage in Branding

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Impact of Color in Marketing, researchers found that up to 90% of snap judgments made
about products can be based on color alone. Additional studies have revealed that our
brains prefer recognizable brands, which makes color incredibly important when creating a
brand identity and there is a real connection between the use of colors and customers'
perceptions of a brand's personality.

Now the question is what about Square Pharmaceuticals Limited. We know men’s like to see
blue and women’s like to see pink in their prefer brand. However, square pharmaceuticals
limited, specially their product did not targeted men’s or women’s individually. Their target
group is all the diabetics’ patient. So they have to take some new strategy.

Logo of Square Pharmaceuticals Limited

Here we are seeing that for the logo of square pharmaceuticals Limited they have used four
colors. Red and Green for text, Black for main logo design and white for the background.
Red is powerful color, symbolizing energy. Red also works for action oriented product. For
that reason they have used red color for the main text. Beside this green is the symbol of
freshness and environmental friendliness and they have used black for the main logo design,
this is because black is more visible. On the other hand here black suit most with other two
colors. They have used white for background. Because we know, white is the symbol of
cleanliness and fresh

Brand Dynamic Pyramid (Ansupen)

15
 Figure: Brand Dynamic Pyramid

Bonding: Square Pharmaceuticals has operating in Bangladesh from 1985 and they
have created a range of loyal customers, so Square Pharmaceuticals Ltd. is in
bonding stage. Ansupen is the product of Square Pharmaceuticals ltd. For that
reason Ansupen also will be on bonding stage.

Box Analysis of Brand Element (Ansupen)

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 Memorable Meaningful

Name of brand is small, so it is easy The product look like a pen and it has
to recall and remember. That is why been used to push insulin. By joint
Ensupen is memorable together these two words they call it
Ansupen. So it is meaningful

Likable Transferable

Likable means inherently fun, As technology is increasing, so in

interesting, colorful and not necessary future Square pharmaceuticals can
always directly related to the product. introduce new product for the same
Here we will not consider Ansupen in purpose. So it is transferable.
Likable.

Adaptable Protectable

No need to adapt their name in Every well known brand is highly

different market. So we will not protected by trade license. So
consider them as adaptable. Ansupen is also portable.

Figure: Box Analysis of Brand Element

17
The Five M’s of Advertising of Ansupen

Mission
Our Mission is to produce and provide quality & innovative diabetic insulin solutions for
people, maintain stringently ethical standard in business operation also creating the brand.

Money
Advertising doesn’t come cheap, especially if blended across printed and digital channels.
Our budget on Ansupen is almost BDT 50 lacs.

Message
Reusable Insulin cartridge.

Media
Website
Poster and leaflets
Seminars and clinical meeting.

Measurement
It will be done by most responses of effective advertisement. A successful advertisement will
be chosen for future campaign.

Mass Communication

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  Advertising Budget & Campaign Cost – 50 lacs
 Sales Promotion & Budget – 20 lacs
 Events & Experiences/Sponsors – Sponsored by own
 Public Relation/Government Lobbying- 24/7 customer service via telephone. Mutual
understand with the government.
 Corporate Social Responsibility – Providing 1000 units of Ansupen to the rural
people.
 Doctors visit and free samples

Marketing Budget & Expenditure

In our marketing budget, the company has totaled its expenditures on each of its inbound and
outbound marketing strategies. In total, the company has spent BDT 5,000,000 for the entire
year on these marketing strategies. Next, the company then accounts for its yearly sales of
BDT 2, 00,000,000 in order to determine the company’s marketing as a percentage of its
sales. It does this by taking the company’s total marketing expenditures of BDT 5,000,000
and dividing it by the company’s yearly sales of BDT 2, 00,000,000. This allows the
company to express its marketing as a percentage of sales, which is 40%

Pricing Strategies
SPL use market competitor based pricing for Ansupen. Main competitor of Ansupen is Novo
Nordisk who is one of the largest insulin manufactures in the world. If there is strong
competition in a market, customers are faced with a wide choice of who to buy from. They

19
may buy from the cheapest provider or perhaps from the one which offers the best customer
service. But customers will certainly be mindful of what is a reasonable or normal price in the
market.
Ansupen in a competitive drug market do not have sufficient power to be able to set prices
above their competitors. They tend to use "going-rate" pricing – i.e. setting a price that is in
line with the prices charged by direct competitors. In effect such businesses are "price-takers"
– they must accept the going market price as determined by the forces of demand and supply.
An advantage of using competitive pricing is that selling prices should be line with rivals, so
price should not be a competitive disadvantage. The main problem is that the business needs
some other way to attract customers. It has to use non-price methods to compete – e.g.
providing distinct customer service or better availability.
In case of increase the market share of Ansupen, Penetration pricing can be associated with a
marketing objective of increasing market share or sales volume. In the short term, penetration
pricing is likely to result in lower profits than would be the case if price were set higher.
However, there are some significant benefits to long-term profitability of having a higher
market share, so the pricing strategy of Ansupen can often be justified.

Breakeven Analysis with Graph

20
Finanancial Analysis

21
 2013-14 2012-13 2011-12 2010-11 2009-10
Turnover 24,193,357 20,742,746 18,592,856 15,576,488 13,279,142
(Gross)
Value Added 3,282,583 2,783,257 2,538,431 2,105,063 1,816,563
Tax
Turnover 20,910,774 17,959,489 16,054,425 13,471,424 11,462,578
(Net)
Gross Profit 9,182,781 7,825,814 6,887,172 5,767,763 4,901,290
Net Profit 5,504,460 4,584,376 3,978,939 3,414,752 2,825,069
before Tax
Net Profit 4,031,811 3,419,785 2,897,711 2,532,055 2,087,872
after Tax
Net Assets 22,277,517 19,052,892 16,396,669 13,817,709 11,554,380
Value (NAV)
Total Assets 26,549,535 23,734,743 21,637,554 19,444,410 15,029,500
Total Bank 418,654 1,937,619 3,002,471 3,761,330 2,231,167
Borrowings
Total 7,768,068 5,996,698 6,745,908 7,022,214 4,774,311
Current
Assets
Total 3,416,620 3,792,438 4,252,935 4,668,189 2,216,744
Current
Liabilities

Above is Annual Report of Square Pharmaceuticals Limited which is a very useful report for
analysis of its financial performance. This report explained about financial strength.
Customer service, risk management, corporate social responsibility, and good governance.
Director’s Report section explained the global economy and Bangladesh economy. This

22
report tried to accumulate all the relevant data and topics regarding financial performance.
This report would be very helpful and handy for potential investors and policy makers.

This report also explained different accounting policies and depth analysis of financial
position. In addition to that, it discuss about the industry performance. It also tells us about
the trend of financial performance. In addition to that, emphasis is given on that information
that creates positive impression about the company and the information in their own way.

Recommendation
SPL has extremely wonderful and systematical working techniques. To recommend SPL is
quite difficult thing. But all things around us are changing at an accelerating rate. Given the
fast changing, dynamic global economy and the increasing pressure of globalization,
liberalization, consolidation and disintermediation, it is essential that SQUARE

23
Pharmaceuticals has a robust recruiting and selection policies and procedures that are
sensitive to these changes. We have found some points to be noticed for betterment of SPL.
1. Because of having no sufficient incentives in comparison with their effort, the
turnover rate of medical representatives is very high. So SPL should reduce their high
dependency for marketing ansupen on medical promotion officer.
2. Though the ansupen are cost effective than that of rivals, still opportunity for
institution based sales should be looked into.
3. Patent right protection is mandatory to do incorporate business local and international
market.
4. More emphasis on service oriented approach to overcome price objection by doctors
through relationship building.
5. Many patients lack the knowledge needed to use insulin pens, especially the proper
priming of needles, need to keep the needle under the skin for a sufficient length of
time after injection to ensure delivery of the entire dose, and storage of the pen in use.
Patient education can correct these knowledge deficits. Patients need to understand
and demonstrate the ability to properly self-administer doses using pens and needles
without automatic covers.
6. To promote proper insulin administration using pen delivery systems, policies and
procedures that address the unique safety concerns associated with pens should be
established in addition to general insulin safety measures
7. SPL can open a 24/7 help line for the ansupen user to handle any emergency situation
or regular queries.

Conclusion
Square Pharmaceuticals Ltd. represents an organization that thrives for continuous learning
and organizational development. For them, organizational development includes a creation of
a strongly-bonded culture; maintaining discipline; continuously adapting to changes resulting
from both internal and external environment; developing human resources through ongoing

24
development and evaluation initiatives; and completing tasks and goals within a given time
frame. SPL continually focusing on corporate social responsibility and adapting to changes
will automatically lead to successful company. Thus, developing a strong marketing strategy
for organization development is becoming an important aspect for the company.

References

1. Dessler, Gary, Human Resource Management (9th edition) ,Last Published: 2011 ,
Publisher: Prentice Hall, New Jersey

25
2. French, L. Wendell, Human Resource Management (9th edition), Last Published: 2011,
Publisher: Houghton Mifflin Company, Boston, Massachusetts.
3. A. Noe & John, R. Hollenbeck, and Human Resource Management (10 th edition),
Publisher: Irwin/McGraw-Hill, Boston, Massachusetts
4. Square Pharmaceuticals Ltd. , Annual Report 2014, Written & Edited by: Accounts &
Finance Department of Square Pharmaceuticals Ltd.
5. Square Pharmaceuticals Ltd., Training Report 2012, Dhaka Unit.

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