Business Plan of Company X

(Diclofenac & Amoxiclav)

Aneri Joshi (16)

Mohit Lodhi (1)

VISION

To make available best quality products at most affordable rates and to meet the needs of our customers.

MISSION

To

Head Office

In Mumbai at Bandra Kurla Complex• Because it is an upcoming commercial hub.• The infrastructure is well developed, spacious compared to other

commercial areas in South Mumbai.• At the same time the real estate is cheaper than South Mumbai.• BKC is easily accessible to central, western & southern Mumbai.

Diclofenac Potassium• It is the drug of choice prescribed by the doctors for any kind of pain or

inflammation. • With increasing cases of Arthritis & Spondilitis, we would like to cater to that

population of people.• Because of the low cost and effectiveness we aim to compete with our competitors.• The combination with potassium is very potent.

Amoxiclav (amoxicillin + clavulonate)• Potent anti drug resistant, antibacterial.• Drug of choice for doctors.• Reliable mechanism of action.• The market for antibacterial drugs is huge• It is an expensive drug in the market.• Company selling it in market at most affordable price.

Marketing Strategy

Target market is doctors in prime areas of Maharashtra and Gujarat

Maharashtra the cities covered were Mumbai, Pune, Nagpur, Nashik.

Gujarat – Vadodara, Surat, Rajkot, Ahmedabad

Team of 10 MRs selected per city.

Thus each city further divided into 10 areas.

Thus total 80 MRs working on the project

Break up of expenses

Salary to employees (remains constant for both the drugs)

• 80 medical representatives (10 MR for each of the 8 cities).

• Monthly salary of each MR = 30000 (30K*80=24Lac).

Yearly salary = 24*12 = 2.88cr.

• Daily allowance of 300Rs per MR, thus 24000Rs for 80 MRs.

Monthly allowance of 24000*25 = 6lac.

Yearly allowance = 6Lac* 12 = 72Lac

• Incentives to MRs on achieving targets = free trip for 2 to Bangkok (worth 20,000)

assuming that 20 out of the 80 MRs achieve targets = 5*15000 = 4 Lac

Total cost = 3.64cr yearly

Cost of seminars

• Number of seminars held yearly = 6 (3 in Mumbai & 3 in Gujarat) • Cost per seminar = 2 lac = 2lac*6 = 12lac yearly

Number of doctors

• If each MR visits 3 GPs a day for Diclofenac Potassium + 1 additional Orthopedic Doctor, we have 8000 doctors visited per month.

Considering same doctor visited twice, around 6000 diff doctors in a month by 80 MRs.

• Thus 6000 doctors for Diclofenac per month

4000 doctors for Amoxiclav

• Therefore 72000 doctors per year all over Maharashtra and Gujarat.

Diclofenac Potassium

MOA-  COX inhibitor, inhibiting inflammatory responses of vasodilation, swelling & blocking transmission of painful stimuli.

USES- Given orally in the treatment of• Rheumatoid arthritis• Osteoarthritis• Spondylitis• Nonrheumatic inflammatory conditions, pain & dysmenorrhea.

DOSE- 50mg twice or thrice daily.

• Cost of tablet sold in the market is Rs 5 per tablet.• Profit margin of Rs 2 per tablet.• Cost of manufacturing per tablet is Rs 1.5 per tablet.

• Cost of advertising/marketing Rs 1.5 per tablet.• Batch of 5 lac tablets (50,000 strips)

thus mkting cost = 1.5*5lac = 7.5lac

• Thus 7.5lac is used for

Wages (sales executives)

Marketing & advertising cost (distribution of leaflets, gifts & samples to doctors, conferences)

Expenses on distribution

Diclofenac K• Wholesalers 10% of cost = Rs 0.5 per tablet = 0.5*5lac tablets

= Rs 2.5lac• Chemists 15% of cost of drug = Rs 0.75 per tablet = 0.75*5 lac

= Rs 3.75 lac

Total distribution expense = 6.25Lac yearly

Expenses on doctors

• Free samples of Diclofenac K

6000 free samples (6000 doctors per month)

1 sample is a strip of 10 = 5*10 = 50*6000 = 3Lac Rs per month

36lac yearly

• Gifts given to doctors for prescribing the drug = 2000 doctors per month.

each doctor given the latest iTouch as free gift from company for prescribing the companies product.

Cost per iTouch is 15,000Rs = 3cr per month

36cr yearly

Total cost = 36.36cr yearly

Revenue on sales

• 70000 doctors visited in 1 year.• If 20000 doctors start prescribing the drug.• Lets assume 1 doctor prescribes Diclofenac K atleast twice a day• Thus 600 prescription per year by 1 doctor• Yearly sales = 600*20000*50(cost of 1 strip) = 60cr• 30% mfg cost (minus 18cr) & 30% mkting expence (minus 18cr)• Thus 24cr profit

Amoxiclav

MOA- Amoxicillin inhibits transpeptidase, preventing cross-linking of bacterial cell wall and leading to cell death.

Addition of clavulanate (a beta-lactam) increases drug's resistance to beta-lactamase (an enzyme produced by bacteria that may inactivate amoxicillin).

USES• Lower respiratory tract infections• Otitis media• Sinusitis• Skin and skin-structure infections• Urinary tract infections (UTIs)

caused by susceptible strains of gram-negative & gram-positive bacterias.

DOSE

Adults and children weighing more than 40 kg- 500 mg twice a day.

• Cost of Amoxiclav- Rs 100 per capsule• Profit margin of Rs 20 per capsule• Cost of manufacturing per tablet is Rs 50 per capsule

• Cost of advertising/marketing Rs 30 per capsule.

• Production and selling of a batch of 5Lac capsule. (1,25,000 strips.Each strip of 4 capsules)

• cost of advertising = 30*5lac = 1.5cr

Expenses on distribution

Amoxyclav• Wholesalers 10% of cost = Rs 10 per tablet = 10*420000 tablets

= Rs 42 Lac• Chemists 15% of cost of drug = Rs 15 per tablet = 15*420000

= Rs 63 lac

Total distribution expense = 1.05cr yearly

Expenses on doctors

• Free samples of Amoxiclav given to doctors

4000 free samples (to 4000 doctors per month)

1 sample is a strip of 4 = Rs 400

Cost of free samples = 16lac per month

1.9cr yearly

• Gifts given to doctors for prescribing = 1300 doctors per month.

each doctor given the latest iTouch as free gift from company for prescribing the companies product.

Cost per iTouch is 15,000Rs = 1.95cr per month

23.4cr yearly

Total cost = 25.3cr yearly

Revenue on sales

• 50000 doctors visited in 1 year.• If 10000 doctors start prescribing the drug.• Lets assume 1 doctor prescribes Amoxiclav atleast twice a day• Thus 600 prescription per year by 1 doctor• Yearly sales = 600*10000*400(cost of 1 strip) = 240cr• 50% mfg cost (minus 120cr) & 30% mkting expence (minus 72cr)• Thus 48cr profit

1st year expenses for the company• Salary + allowances + incentives = 3.64cr• Cost of seminars = 12lac

Diclofenac K• Distribution cost = 6.25 lac• Doctors expenses = 36.36cr

Amoxiclav• Distribution cost = 1.05cr• Doctors expenses = 25.3cr

Total expenses = 66.54cr

Profits = 72cr