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