Reason and remedies of sales decline

A case study of

GACO PHARMACEUTICAL

Prepared by

Rebeka Sultana Id#F-20911111074

Khandoker Badrul Alam Id#M-20911111047

Mahmudul Hassan Sohag Id#M-20911111062 MD.Maruf Ahmed Id#M-20911111077

MD. Moshiur Rahaman Id#M-20911111071

INTRODUTION

The pharmaceutical sector is the second largest sector after agriculture that contributes to the revenue generation of the Bangladesh government. The sector has growth potentials both in local and export market. There is an increasing trend in the export of pharmaceutical sector that indicates very good future prospects for the country. The government of Bangladesh realized that the pharmaceutical sector can be developed to a large extent in terms of technology, upgrading, quality improvement, export quality expansion and reduction of import dependency.

INTRODUTION

In Asia continent Bangladesh has some certified pharmaceutical company. Gaco is one of them. But currently Gaco facing some crisis which effects their production. Gaco cannot get public appearance like other pharmaceutical companies. Though Gaco pharmaceutical has all qualities but they are now facing some problem in the production of medicine because of mismanagement. For this problem Gaco pharmaceutical has lost their public appearance. For that reason Gaco pharmaceutical can’t compete with other pharmaceutical company. Other pharmaceuticals take the chance and growing their market rapidly in few years.

OBJECTIVES OF THE REPORT

There are certain objectives behind selecting this topic. We mainly want to find out the problems behind and also the prospect it has in business field. As some other objectives are:

We tried to find out the main problems of the Gaco pharmaceutical, which destruct the production of medicine.

We tried to find out the flexible solutions to solve the

problems of Gaco pharmaceutical

METHODOLOGY

Sources of information:The information have been

collected in two ways- Primary Sources. Secondary Sources.They are as follows:

Information required Type Sources

Information about Gaco Pharmaceutical

SecondaryBooks, Journals and Internet

Information about Gaco Pharmaceutical

Primary Interview the marketing manager

METHODOLOGY

Type of study: The type of study was qualitative in nature

Participants 1. Mahamudul Hasan Sohag Group Leader 2. Rebeka Sultana 3. MD. Maruf Ahmed 4. Khandakar Bodrul Alam 5. Md. Moshiur Rahaman All the group members contributed according to the task

designated to achieve our goal. We separately worked on this topic. Each one gathered

different information about Gaco Pharmaceutical. Finally the group jots down the information and compiled the report.

Time Budget

We tried to complete our work with in this allowed period-

Date Activities

12-04-2010 Proposal Submission

12-04-2010 Proposal Presentation

13-04-2010 to 23-04-2010 Preliminary information collection

24-04-2010 to 06-05-2010 Collection of Expert opinion and primary Information search

06-05-2010 to 13-05-2010 Report compilation and finalizing 14-05-2010 Power point presentation

15-0502010 Report submission and Presentation

LIMITATION OF THE STUDY

When we have collected information for the purpose of the report, we faced some limitations. Those are given bellow:

Gaco pharmaceutical is now in a bad position for that reason their websites are not updated. As a result we got a little bit information about Gaco pharmaceutical from the websites.

The Marketing Manager of Gaco pharmaceutical is always busy so getting appointment from him was difficult.

Gaco pharmaceutical is not well known that’s why information collection was difficult.

PRESENT CONDITION OF GACO

PHARMACEUTICAL

In Asia continent Bangladesh has some certified pharmaceutical company. Gaco is one of them. But currently Gaco facing some crisis which effects their production. Gaco cannot get public appearance like other pharmaceutical companies.

If Gaco can get back their fame by solving their crisis, Bangladesh will economically benefited in pharmaceutical sector, which is profitable for the future prospect of the country.

REASONS OF SALES DECLINE

There are many causes of the sales decline of Gaco pharmaceutical, we find out these causes by observation. The causes of sales decline are given bellow:

Shortage of working source of people: Gaco pharmaceutical has many causes behind their problems. Shortage of working source of people is one of them. The working source of people in Gaco pharmaceutical is not sufficient. The full working source of people of

Gaco pharmaceutical is 250 people.

Shortage of production: Shortage of production is another reason of sales decline. Because of many problems the production of Gaco pharmaceutical is decreases in every year.

REASONS OF SALES DECLINE

Lack of publicity: Lack of publicity is also responsible for sales decline of Gaco pharmaceutical. Because of this reason most of the people don’t know about Gaco pharmaceutical, quality of their medicine and their product.

Untrained Salesmen: The salesmen of Gaco pharmaceutical are not properly trained.

The salesmen have not proper knowledge about the medicine and the company. It harms Gaco pharmaceutical’s reputation.

Lack of production factory: There is only one production factory in Gaco pharmaceutical. This hampers the production of Gaco pharmaceutical and causes sales decline.

REPORT OF SALES DCELINE

With in few years the sales of Gaco pharmaceutical is decrease from the past situation. We observe annual production of Gaco pharmaceutical. Our observation included 2006, 2007, 2008 and 2009. The observation shown by a table bellow:

Table 1: Sales Decline Report

Year Production (in millions)

2006 44

2007 36

2008 24

2009 18

REPORT OF SALES DCELINE

1980

1990

2000

2010

2020

2030

2040

2050

1 2 3 4

Sales Decline

Production (inmillions)

Year

Chart1: Sales decline

POSITION OF OTHER PHARMACETICAL COMPANY

The companies related in Pharmaceutical production have a vast number of different products which are offered to the consumers. Maximum products are homogeneous and almost all companies provide consumers with products according to therapeutic class. Some companies are new to the business and they are finding some grounds to stand on and operate. Aristopharma Ltd (founded in 1986) & Incepta Pharmaceuticals Limited (founded in 1999) are companies quite new to the business yet they are performing quite well.

POSITION OF OTHER PHARMACETICAL COMPANY

Annual Production (Company Based)

Name of the companies Production in 2006(in millions)

Gaco pharmaceutical 44

Aristopharma Ltd 37

Beximco Pharmaceuticals Ltd

50

Incepta Pharmaceuticals Limited

46

Eskayef Bangladesh Limited 28

SQUARE Pharmaceuticals Ltd. Bangladesh

63

POSITION OF OTHER PHARMACETICAL COMPANY

0

10

20

30

40

50

60

70

Gaco Aristo Beximco Eskayef Incepta SQUARE

Position of other company

Production in 2006 (inmillions)

Chart 2: Position of other company

SUMMARY FINDINGS

Gaco pharmaceutical is a certified pharmaceutical company in Bangladesh. But in present scenario Gaco pharmaceutical has lost their public appearance because of some problem. If Gaco pharmaceutical can solve their problem it can help in the economy of Bangladesh in pharmaceutical sector.

Though Gaco pharmaceutical has the best quality medicine but Gaco pharmaceutical has a shortage of working source of people. In Gaco pharmaceutical the source of working people is not sufficient. The full source of working people in Gaco pharmaceutical is 250 people.

In Gaco pharmaceutical there are untrained salesmen. The salesmen don’t know much about the medicine quality and Gaco pharmaceutical. They have not much knowledge how represent the medicine and its quality.

SUMMARY FINDINGS

Gaco pharmaceutical can’t do much for their publicity. For that reason much people don’t know about their medicine quality. Other pharmaceutical companies take the chance. And increase their business in pharmaceutical sector.

Gaco pharmaceutical have many other product like any other pharmaceutical company but their product is not well known to all. That’s why can’t do good business in this sector.

With in few years the production of Gaco pharmaceutical is decreases because of some problem.

SUMMARY FINDINGS

Gaco pharmaceutical is a private company. This company is established since 60 years. But having some lacking the company cannot compete with other pharmaceutical company.

Gaco pharmaceutical has a high qualified medicine like other well-known pharmaceutical company. If Gaco pharmaceutical can get back their place again in the business market it will be beneficial for the economy of Bangladesh.

RECOMMANDATIONS

If Gaco pharmaceutical can increase their working sources of people the production will increases.

Gaco pharmaceutical should increase their production factory. It is a important step to solve the production problem.

Gaco pharmaceutical should more attentive about their publicity. Their product is highly qualified if the people don’t know about this they are not interested in it. So it is essential to take steps for increasing the publicity.

RECOMMANDATIONS

Gaco pharmaceutical should train their salesmen. The salesmen of Gaco pharmaceutical are not properly trained. The salesmen have not proper knowledge about the medicine and the company. It harms Gaco pharmaceutical’s reputation.

Gaco pharmaceutical should concentrate on their other product which can execute or work out the production problem of Gaco pharmaceutical.

In present situation Gaco pharmaceutical is not so good. Gaco pharmaceutical should increase the production by taking proper steps.

CONCLUTION

"Your health is our concern" is the only slogan of Gaco Pharmaceuticals. We ensure the quality of life for the people around the country through manufacturing best quality products. To provide inspiration for establishing a committed and motivated nation, reach the healthcare services to the door-steps of the people, manufacture and market safe and effective medicines of the highest quality, ensure WHO cGMP and local regulatory norms from procurement of raw materials to supply of finished products, be distinctive in growth through innovation and achieve a prestigious status in pharmaceutical sector Gaco follow this objectives as its moral duty. Gaco pharmaceutical is one of the best pharmaceutical company in Bangladesh. Gaco pharmaceutical should develop their product management which is economically benefited for Bangladesh.