Business Case
Pain Killer Production
By: Shakiba Khanum
Lahore
MAP
Population 10 million% of 15 Plus age people
67% (6.7 Million)
MAP
Our Ambition
Pharmaceuticals are the substances that are aimed to treat, cure, prevent or recognize diseases and relieve pains through their applications. Research and discovery are the essence of pharmaceutical industry, and its success has played a vital role in maintaining pre-eminent position of the pharmaceutical industry in the world Today. Such activities demand a sustain rate of huge investment over a long period. Pharmaceutical Industry devotes huge resources to R&D more than any industry.
Product Info.
• Our product is set to out set all previously developed pain killers
• It has no side effects • It is at least twice as potent as other
drugs in the market
Rs. 0.5/ tablet to manufacture Rs. 0.3/tablet for packagingRs. 0.2/tablet as logistics costs
Total 1 Rupee cost (without sales tax)
Quality
Cost
Product Info
• Excel in meeting customer needs.
• Maintain leadership in national pharmaceutical industry
• Gain confidence of Doctors, Pharmacists and Consumer who use this product.
• Seek employee involvement, continuous improvement and enhanced performance goals.
• Encourage export business
Objectives
Sales
1st Qtr 2nd Qtr 3rd Qtr 4th Qtr
Market Size
Market of Panadol and Brufen:
100,000,000 Rupees = 100 Million per yearNo. of tablets consumed = 50,000,000 (50 Million)
Targets
Market Size
Goals
80% of Market = Panadol and Brufen
20% of Market = People who don’t afford costly tablets
As our tablet is :• Not costly than these• 2 times more effective• Having no side effect
So hence we target all 100% customers
Market Size
Rs/Year Calculation
• Total Sales of Panadol and Brufen: Rs.100 Million
• Number of Tablets : 50 Million
• 80% of market is 50 Million
• 100% of Market = 63 Million
Our Market Size = 63*Tablet price (Millions)
Expected Business
Price of 1 tablet around 1.5 to 2 rupees(Assume that Sales tax is 0.5 to 1 rupee)
In 1 year 63*2 = 126 Million Rs.
In 3 years 126*3= 378 Million Rs.
Target in next 3 years
Our Sales Strategy
Awareness Among Doctors
• As in a 2013 report: World's Most Popular Painkiller Raises Heart Attack Risk, So have to tell Benefits of using our product
• Advertise on local television channels
• Advertise in Hospitals
• Give free samples
• Through print media
Our Sales Strategy
Availability
• Dispatch Orders by Medical stores in time
• Start a feedback system for General public (mobile Application) where they can feedback and also comment for unavailability
• Monitor for stock of product
Our Sales Strategy
Sales People
Stat: In Pakistan 0.8 of every 1000 population is a physician
In Lahore: This figure will be up to 3-5 per 1000
Physicians in Lahore: 10 Million : (10,000,000/1000)* 3
(at least)=30,000
At least 300 sales people Must be required.
Our Sales Strategy
Doctor Contact
Frequency and plan
• Contact Each doctor at least once in quarter year
• Sales person must Contact at least 30 doctors per month
• Give them Samples and gifts
• Have good contact beyond Profit/Loss
Profit Loss Sheet
Pain Killer Tablet Profit and Loss StatementIncome
Sales 126,000,000 Total Sales 126,000,000
Cost of Goods SoldStock Purchases 63000000Less Closing Stock -
Total Cost of Goods Sold(COGS) 126000000Gross Profit 63000000Expenses
Advertising on TV 2,000,000Bank Service Charges 20,000Insurance 50,000Gifts to doctors 3,000,000Payroll 7,200,000Professional Fees (Legal, Accounting) 5,000Transport 200,000Utilities & Telephone 200,000Other: Computer Software 10,000 Expenses total 12,685,000
Net Profit before Tax 50,315,000
ConclusionConclusion