Pharmaceutical Distribution Channel in Bangladesh

Topics: Marketing, Pharmaceutical industry, Supply chain Pages: 12 (3271 words) Published: May 9, 2013
Research on Pharmaceutical Channel Distribution
Medhad Nasser Chowdhury

MKT 450.1
Faculty Members: Shahed Hussain

The New Era

A journey through the pharmaceutical channel system in Bangladesh


The aim of the study is to analyze the changes that took place in Bangladesh Pharmaceutical Industries Channel system in the past decade. The current scenario of the pharmaceutical Industry in Bangladesh and external effects that might bring in further changes in the industry is to be thoroughly looked at. Countries with similar channel structure are also analyzed in this course of study. Countries such as Japan, India and Myanmar are presented with their issues and successes. The Rapid growth of the Bangladesh pharmaceutical industry gave birth to many scopes in creation of different forms of Channel Intermediaries such as wholesalers, retailers out sourced salesperson, and manufacturer sales reps. The pharmaceutical industry developed rapidly from the 1980s after the introduction of Drug (Control) Ordinance-1982. Adequate infrastructure and use of trained manpower were two essential requisites for implementation of national pharmaceutical policies in Bangladesh. The country was importing significant amount of medicine and also raw materials for the industry from abroad. But the industry has started to export its products in foreign market, especially in the Middle East and Europe with great success. This study tries to identify the similarities and dissimilarities between the Bangladeshi pharmaceutical Industry and the Pharmaceutical Industries in neighboring countries where the industry infrastructure not too far from Bangladesh’s.

The pharmaceutical sector is one of the thrust sectors in Bangladesh. Before Liberation, there was hardly any pharmaceutical enterprise in Bangladesh (then East Pakistan). After several years of liberation, the government could not increase (in relative terms) budgetary allocations for the improvement of health sector. At that time, most of the people had little access to the essential life-saving medicines. This sector started to improve from 1980s. The pharmaceutical industry has grown in the last two decades at a considerable rate. After the promulgation of Drug Control Ordinance-1982, the development of pharmaceuticals industry has accelerated. The Pharmaceutical Industry is composed of 200 different companies with an industry growth rate of 17%. Now this development of the industry triggered a major Channel systems creation that ought to be very structured and induces no need for any reengineering. Lets looks into the channel structure: Insert Exhibit 1 here

The channel Structure in Bangladesh pharmaceutical Industry is a very sophisticated a structure with multiple routes to reaching their end customer. The use of many channel intermediaries allow the manufacturer provide the product to reach the end user with a strong potential of value creation. As seen in the Core competency of Orion infusion ltd., one of the leading pharmaceutical manufacturer in Bangladesh, who confirms their competitive edge as of ‘’Our extensive distribution network in al over Bangladesh provides a smooth operation to meet the need of our customer since its inception. Under the direct surveillance of the Central Distribution Centre, 700 people ensure te on time delivery through 20 depots and 45 customized vehicles confer the quality till it reaches to the hand of the end-customers.’’ It is quite evident with that our channel structure is in a very sustainable, expandable and robust position. Insert Exhibit 2 here

Marketing In Bangladesh Pharmaceutical Industry
Marketing is the backbone of all industries. Though pharmaceuticals produce life saving drugs, they also need marketing. But their marketing is to some extent different from other industries. Some major characteristics of marketing sector are given below: * Their...

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