This presentation will surely give an insight into how one should go about while formulating "Marketing Plan" of any product.

1. TRACTOR DRUGS MARKETING PLAN
SUBMITTED BY
GROUP 13
(TANYA GOGIA
PANKAJ GUPTA
OJAL GARG)

2. 1.0 EXECUTIVE SUMMARY
 Tractor Drugs is preparing to launch a specialized line of
international quality lifesaving drug.
 Offering is Kadcyla (Emtansine) which is used for
treatment of Cancer.
 Targeted Market is Southeast Asia.
 Our Products are cheaper as compared to same drug of
other companies.
 We are likely to sustain because of Competitive
advantage of Highly Qualified Medical Representatives
and brand recognition.
 Through its Japanese and Hungarian collaborations,
Tractor Drugs has developed a specialized line of
international quality life-saving drugs and already had a
high reputation with doctors and hospitals in India.

3. 1.0 EXECUTIVE SUMMARY (CONT)
 MISSION OF TRACTOR DRUGS
Tractor drug’s mission is to provide the customer with the
best prices and service for prescription medication. We
exist to attract and maintain customers. When we
adhere to this maxim, everything else will fall into place.
Our services will exceed the expectations of our
customers.
 CONSUMER PROMISE
Consumer will get product in relatively cheaper price and
having the same market quality as our competitors are
providing. Our product is FDA approved, so we are upto
the expectations of our Customers.

4. 2.0 SITUATIONAL ANALYSIS
 Tractor Drugs has developed a specialized line of international
quality lifesaving drugs. Tractor products already have a high
reputation with doctors and hospitals in India. Now, we want to
expand in Southeast Asia and west Asian markets. We found that
our medical representatives are much better qualified and trained
than the medical representatives of competing multinational drug
companies in southeast and west Asia. Our new strategy is
calling for creating two international sales forces – one based in
Madras and the other based in Mumbai. These sales forces
staffed with M.Sc. M. Pharma and even MBBS medical
representatives, would detail doctors and hospitals in Southeast
Asia and west Asia. Because of the specialized nature of drugs,
Our multinational competitors also had to rely on international
sales forces operating out of Cairo, Dubai, Europe, Tokyo, Hong
Kong or Singapore to service the two target markets. We figured
that our India based sales forces would cost 30% to 50% of what
the competitors’ sales forces cost and were better trained, With
this strategic cost advantage, We are developing time phased
plan for market penetration in Southeast and west Asia.

5. 2.1 MARKET SUMMARY
 Tractor Drugs possesses good information
regarding their market and the target segments that
they wish to serve in the Southeast Asian Region.
 Buying patterns in Southeast Asian:
0
2
4
6
Walk in Customers
Mail Order
Customers Others
Series 1

6. 2.1 MARKET SUMMARY (CONT)
 Market Needs: The pharmacy seeks to fulfil the following
benefits that are important to their customers in India:
1. Selection
2. Accessibility
3. Customer service
4. Pricing
 Market Growth
1. In 2000, the global pharmaceutical industry as a whole was
a $897 billion dollar industry.
2. The Pharmaceutical industry in India is the world's third-
largest in terms of volume.
3. According to India Brand Equity Foundation, the Indian
pharmaceutical market is likely to grow at a compound
annual growth rate (CAGR) of 14-17 per cent in between
2012-16. India is now among the top five pharmaceutical
emerging markets of the world.

7. 2.2 SWOT ANALYSIS
STRENGTHS
1. A unique, current business-
environment-appropriate business
model.
2. Excellent staff who are highly
trained and very customer attentive.
3. Great prices.
4. The ability to scale rapidly for the
mail order side of the business.
WEAKNESSES
1. The lack of visibility and brand
equity of a start-up business.
2. Lack of true experience running a
mail order outfit.
3. Government intervention into
medicine is possible.
.

8. 2.2 SWOT ANALYSIS (CONT)
 THREATS
 1. The entry into the mail order market
by an established company
 2. Regulatory legislation that curtails
the mail order medicine industry
 3. Some event that cripples interstate
commerce in regards to shipping.
OPPORTUNITIES
1. Outside pressure on consumers
to purchase meds mail order.
2. The constant growth of the
number of people taking
medication.
3. Newly formed alliances of
insurance companies and mail
order pharmacies.

9. 2.3 COMPETITION
 Chain pharmacies
 Local pharmacies
 Internet pharmacies
 Major Competitors: Eli Lilly, Astra Zeneca,
Novartis and Pfizer are in the top 10 medicine firm
of world.
Astra
Zenaca,
35
Eli Lilly, 50
others,
15
, 0
Sales Split
Astra Zenaca Eli Lilly others

10. 2.4 PRODUCT OFFERING
o Kadcyla (Emtansine). It’s features are as follows:
1. It is a drug used to treat cancer patients.
2. Kadcyla is available in 2 variants pack, 10mg and
160mg.
3. It has short span life of 6 months.
4. As the drug is temperature sensitive, drug should be
kept between 2 to 8 degree Celsius. Below or above
the temp. range drug may deform and may lose it’s
biological activity. It is advised to use drug within life
span and kept in low temperature.
 Competition : Kadcyla is manufactured by Novartis,
Astra Zeneca, Eli Lilly, Pfizer and Tractor Drugs.
 Cost & Pricing : Retail price for a 10mg vial is Rs. 2000
and 160mg vial is Rs. 6,000. The estimated cost of
production is 75% of retail price.

11. 2.4 PRODUCT OFFERING (CONT)
 The Demand and Supply : There is a considerable
demand supply gap in the drug industry.
0
50
100
150
200
250
300
1990 1995 2000 2005 2010 2014
No.of Customers in '000s Actual Supply

12. 2.5 DISTRIBUTION
 Before considering the various distribution centers
of Tractor Drugs, let us focus upon the value chain
analysis that the pharmacy follows:

13. 2.5 DISTRIBUTION (CONT)
 Distribution includes all the activities necessary to move
products from producers to customers:
 Tractor Drugs will focus more on Traditional channels:
company has some 50 independent distributors and
over 200 retail outlets that will be opened in India.
 Selling directly to the consumers will be more focused
upon as this will reduce the cost of various retailers and
wholesalers which maybe otherwise involved.

14. 3.0 MARKET STRATEGIES
 Medical representatives shall meet doctors and
acknowledge them of our products which is FDA
approved, cheap and with same performance
metrics as other companies. Retailers would be
another target as they will order this drug in doctors
preference. Retailer would be given good margin
with cheap availability of drugs to Customers.

15. 3.1 OBJECTIVES
1. Increase repeat customers by 7% each quarter.
2. Decrease customer acquisition costs by 8% per
year.
3. Increase customer awareness of Tractor Drugs as
evidenced by an increase in product requests
solely generated by knowledge of The Pharmacy's
name.
4. To attain approximately 5% share of the estimated
volume for medicines.

16. 3.2 TARGET MARKETS
The Discount Pharmacy will have different strategies
for the two different groups:
1. The walk-in customers will be targeted through
advertisements in the local paper.
2. The mail order customers will be targeted
through an advertising campaign in magazines
and newsletters that have an older (over 55)
crowd that regularly needs medication and knows
in advance what their needs are.
3. One of the main newsletters that “Tractor Drugs
Review” will be visible in is the A.A.R.P monthly
newsletter.

17. 3.3 POSITIONING
 The Tractor Drug’s competitive edge is superior pricing.
 Tractor Drugs is able to decrease operating costs by not
offering all of the typical services traditionally offered by
pharmacies.
 Tractor Drugs is able to maintain industry margins through
the use of other operating efficiencies.
 Lastly, although there is a pharmacist on hand, Tractor Drugs
is not designed to hold the patients hands when they
purchase their medications. The vast majority of Tractor
Drug’s customers is veteran drug takers and is already aware
of how to take the medication and any side effects or drug
interactions that should be avoided. Regardless, Tractor
Drugs will provide each patient with a print out of all the
information they need for the consumption of the drugs.

18. 3.4 STRATEGIES
 Target Market
 Positioning
 Product Line
 Price
 Distribution
 R&D
 Advertising
 Customer care

19. 3.5 MARKETING MIX
 Product
 Drug Kadcyla
 Price
 Low prices
 Place
 Various outlets being opened in various cities and direct
selling
 Promotion

20. 3.6 MARKETING REASEARCH
 Several focus groups will be held
 Survey will be handed out
 In-depth analysis of the pharmacy industry,
focusing on consumer decision models within the
industry

21. 4.0 FINANCIALS
 We, at Tractor Drugs wish to achieve:
1. A double digit growth rate for the first five years
2. Reduce the variable costs associated with
servicing each individual order by 4% a year
3. Profitability by the end of year three

22. 4.0 FINANCIALS (CONT)
 Total first year sales for Emtansine is projected to 4
crore with an average realised price of Rs. 2000 for
10mg vial and Rs.6000 for 40mg vial for sales
volume of 20,000 vial. Projected Variable cost for
production is Rs.1000 and fixed cost is 500 for
20,000 vials.
 Total cost would be 1500*20,000= Rs. 30,000,000,
a profit of 1 Crore. Advertising cost is not included
in this. Our other drugs are already available India.
So, advertising cost would be less as advertising
amount will be shared.
 For 2nd, 3rd,4th and 5th year, sales is forecasted as
30000, 38000, 42000 and 45000 respectively.

23. 4.0 FINANCIALS (CONT)
0
5000
10000
15000
20000
25000
30000
35000
40000
45000
50000
Year 1 Year 2 Year 3 Year 4 Year 5
5 year sales forecast
Sales Expected
Sales will show introduction-growth-mature phase split in 5
years.

24. 5.0 CONTROLS
5.1 IMPLEMENTATION
The following areas will be monitored to gauge
performance:
 Revenue: monthly and annual.
 Expenses: monthly and annual.
 Repeat business.
 Customer satisfaction.

25. 5.0 CONTROLS (CONT)
5.2 MARKET
ORGANIZATION
Tractor Drug’s Chief
Marketing Officer, Mr.
Manish Kumar, holds the
overall responsibility for
all of the company’s
marketing activities that
will be carried out in
India. The pharmacy’s
structure of marketing
organisation will be as
follows: