Khóa luận - Marketing activities in An Chau pharmaceutical joint stock company

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Facebook:@Dethivaonganhang www.facebook.com/dethivaonganhang GRADUATION THESIS Major: International Business Administration MARKETING ACTIVITIES IN AN CHAU PHARMACEUTICAL JOINT STOCK COMPANY www.ThiNganHang.com S Á C H – T À I L I Ệ U T H I T U Y Ể N Trang 1

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Facebook:@Dethivaonganhang www.facebook.com/dethivaonganhang ACKNOWLEDGEMENT This graduation thesis is the result of thirteen weeks of research and writing during the last semester of my final academic year at Hanoi Foreign Trade University. It has been an interesting and learning experience. In fulfilling this thesis, I would like to give my special thanks to many people for their significant help, contribution and recommendation during my writing process. First and foremost, I am heartily thankful to my supervisor, MBA. Nguyen Duc Nhan, whose encouragement, guidance and support from the initial to the final level enabled me to develop an understanding of the subject. Secondly, special and grate thanks must go to all the managers, staffs and customers of An Chau Pharmaceutical Joint Stock Company, Ha Noi Capital for their cooperation that helped me in this study. Futhermore, I offer my regards and blessing to my family and friends who support respect during the completion of the thesis. Lastly, gratefulness is to the readers whose feedback will help much in improving the thesis. Hanoi, April 2015 Tran Thi Thanh Tam i

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Facebook:@Dethivaonganhang www.facebook.com/dethivaonganhang ABSTRACT The graduation thesis represents the results of research on marketing activities of An Chau Pharmaceutical Joint Stock Company. The purposes of this study are to identify the marketing activities of An Chau Pharmaceutical Joint Stock Company and measure factors affecting to the marketing activities. Then, base on that, some recommendations are put forward to help An Chau PJSC improve the quality of medicines and enhance the effective of marketing activities. Currently, An Chau PJSC has launched drugs in all 63 provinces and cities in Vietnam. However, due to some reasons both objectively and subjectively, it is impossible to conduct the research on marketing activities in all provinces and cities in Vietnam. Therefore, an area should be selected to be the representative for the whole country. In this thesis, Some province like Ha Noi, Nghe An, Ha Tinh, Da Nang, Hai Phong is chosen to study because it is the most convenient area for the researcher. In addition, this branchs has a huge number of customers of An Chau PJSC. Therefore, it may be given more accurate information and able to take the right actions. Questionnaires were sent out to 210 customers of An Chau PJSC in some province above but only 150 collected responses were usable. ii

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Facebook:@Dethivaonganhang www.facebook.com/dethivaonganhang TABLE OF CONTENTS TABLE OF CONTENTS...............................................................................................1 LIST OF ACRONYMS.................................................................................................vi LIST OF TABLES AND FIGURES...........................................................................vii 1. INTRODUCTION......................................................................................................1 1.1. Background and cause of this paper: ....................................................................1 1.2. Objective ...............................................................................................................2 1.3. Research questions ................................................................................................3 1.4. Research scope ......................................................................................................4 1.5. Structure of the thesis............................................................................................4 2. LITERATURE REVIEW..........................................................................................5 2.1. Overview about Marketing ...................................................................................5 2.1.1. History of Marketing ......................................................................................5 2.1.2. Definition of Marketing..................................................................................7 2.1.3. The Role of Marketing....................................................................................9 2.1.4. Marketing in pharmaceutical.......................................................................10 2.2. Basic content of Marketing Mix .........................................................................11 2.2.1. Product .........................................................................................................11 2.2.2. Price .............................................................................................................18 2.2.3. Place.............................................................................................................22 2.2.4 Promotion ....................................................................................................24 3. RESEARCH METHOD ..........................................................................................29 3.1. Pharmacy marketing research .............................................................................29 3.2. Research process for thesis .................................................................................29 3.2.1. Recogniance survey......................................................................................29 3.2.2. Questionnaire design ...................................................................................29 iii

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Facebook:@Dethivaonganhang www.facebook.com/dethivaonganhang 3.2.3. Data collection .............................................................................................31 3.2.4. Conducting the results .................................................................................31 4. DISCUSSION AND FINDING ...............................................................................32 4.1. Company background .........................................................................................32 4.1.1. General information.....................................................................................32 4.1.2. Establishment and development process......................................................32 4.1.3. Vision, mission, values .................................................................................33 4.1.4. Organization chart .......................................................................................35 4.1.5. Human resources .........................................................................................36 4.1.6. Production....................................................................................................37 4.1.7. Monthly financial result ...............................................................................38 4.2. Analyzing marketing activities of An Chau PJSC. .............................................39 4.2.1. Factors affecting the marketing activities in An Chau PJSC .....................39 4.2.2. An Chau PJSC market..................................................................................47 4.2.3. Distribution strategy ....................................................................................47 4.2.4. Price .............................................................................................................50 4.2.5. Product .........................................................................................................53 4.2.6. Promotion and business assistance policy...................................................59 4.3. Pros and cons of An Chau Pharmaceutical Joint Stock Company‘ marketing environment................................................................................................................63 4.3.1. Strengths.......................................................................................................63 4.3.2. Weaknesses...................................................................................................63 5. SOME SUGGESTIONS FOR THE MARKETING ACTIVITIES OF AN CHAU PJSC .................................................................................................................66 5.1 Objectives and development orientations of the company ..................................66 5.2. Oriented strategies from the SWOT matrix Marketing ......................................67 5.3. Customer feedback about the marketing activities at An Chau PJSC ...............69 iv

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Facebook:@Dethivaonganhang www.facebook.com/dethivaonganhang 5.4. Some supporting solutions for Marketing activities ...........................................70 5.4.1. Improving and developing the market research activities ...........................70 5.4.2. Improving product activities ........................................................................71 5.4.2. Improving pricing activities .........................................................................72 5.4.3 Improving distribution activities ...................................................................74 5.4.4 Improving promotion activities .....................................................................75 5.5. Limitations of the study and suggestions for future work ..................................77 5.6. Contributions of the study...................................................................................78 REFERENCE .................................................................................................................a v

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Facebook:@Dethivaonganhang www.facebook.com/dethivaonganhang LIST OF ACRONYMS R&D Research and Development PJSC Pharmaceutical Joint Stock Company SMBs Small and medium enterprises ETC Ethical Drugs OTC Over the counter BOD Board of Directors ROE Return On Equity vi

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Facebook:@Dethivaonganhang www.facebook.com/dethivaonganhang LIST OF TABLES AND FIGURES Figure 2.1. The Marketing Mix Model 16 Figure 2.2. Product levels 18 Figure 2.3. Stages on the Product Life Cycle Marketing 19 Figure 2.4. Channels of distribution 28 Figure 4.1. Logo of An Chau Pharmaceutical JSC 37 Figure 4.2. Organizational structure of the company 40 FIGURE Figure 4.3. Growth of the total amount used drugs Vietnam 46 Figure 4.4. Distribution channel of An Chau PJSC 53 Figure 4.5. Product Structure of An Chau 2014 60 Figure 4.6. The dosage form, levels, packing of paracetamol 62 Figure 4.7. Form of advertising signboards drugstores 65 Table 4.1: Revenue, profit and retained earnings from 2012 – 2014 44 Table 4.2. Revenue on customer group 53 Table 4.3. The Sale Promotion Program of An Chau PJSC in 2015 57 Table 4.4. The discount policy for clinics and hospitals 58 Table 4.5. The product development portfolio in width in 2014 59 Table 4.6. The revenue of Children product group 61 TABLE Table 4.7. Portfolio of ingredient liver medicine in 2014 61 Table 4.8. The development of products which have Ginkgo Biloba 64 vii

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Facebook:@Dethivaonganhang www.facebook.com/dethivaonganhang 1. INTRODUCTION 1.1. Background and cause of this paper: Economic crisis has led to the decline of areas of the economy while Medicine Industry is still considered to grow with the average speed growth of 18.8 % per year in a 5-year period from 2009 to 2013 (ViettinbankSc Report, 2014). The primary factor that impacts on this trend is that medicine can not be replaced by any other products and the awareness of Vietnamese about medical and health care has also improved. Vietnamese pharmaceutical market has the highest growth level in South-east Asia, about 16% every year (ViettinbankSc Report, 2014). The total consumption value of tobacco was $3.3 billions in 2013 and it is predicted to increase by $10 billions in 2020 (FPTS Report,2014). All the sectors of the economy are accepted and can participate in Vietnamese medicine market for advancing medicine supply. By the end of 2013, there has been 4560 enterprises participating in supplying and contributing medicine, there are 1336 domestic medicine enterprises among them and 425 foreign ones that are licensed for business activities in Vietnam (FPTS Report,2014). The participation of private companies with their simple organizational structures,flexible business strategies and high adaptation to market fluctuation has contributed to change Vietnamese medicine market. Medicine market is getting overheating with average speed of growth 17% (FPTS Report,2014). However, most of medicine private businesses have small scales, limited economic potential, small nomenclature and severe competition between companies as well. When it comes to this situation, if the medicine enterprises want to develop stably, they have to not only attach special importance to both technology and human resources‘ investment but also specially attend to handle marketing strategies creatively in order that they can get market opportunities and their own competitive advantages. Marketing strategy do not always decide an enterprise‘s success or failure; nevertheless, it is indispensable. 1

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