Report on Business Marketing Research on JMI, a B2B Market [Elegant (VI)]

Report

On

Business Marketing Research on JMI, a B2B Market

(Based on the Study of Business Marketing)

[ ]

Report

On

Business Marketing (Course: 514)

Topic: Business Marketing Research on JMI, a B2B Market

Prepared for:

Usmita Afrose

Assistant Professor

Department of Marketing

Faculty of Business of Studies

University of Dhaka

Prepared by:

“Elegant (VI)”

Section: A

Department of Marketing (14th)

Faculty of Business Studies

University of Dhaka

Date of Submission: 10th October, 2012 eng.

[ ]

Group Profile:

“Elegant (VI)”

We are...

No. Name Roll Designation E-mail Address Remarks

1 Md. Abdur Rakib 041 Member [email protected]

2 Rumana 087 Member [email protected]

3 Md. Al Amin 089 Member [email protected]

4 Anjuman Ara 139 Member [email protected]

5 Md. Moben Ahmed 151 Member [email protected]

6 Chowdhury Omor

Faruque

173 Leader [email protected]

[ ]

Letter of Transmittal:

10th October, 2012

Usmita Afrose

Assistant Professor

Department of Marketing

University of Dhaka

Dear Sir,

Here is the report on the topic of “Business Marketing Research on JMI, a B2B Market” and the

details of it (Based on the Study of Business Marketing) that you asked us to conduct.

This report helped us to collect convenient and very significant knowledge about the surgical

device market in Bangladesh as a whole. This report is based on the strategies and activities

conducted by JMI syringe & Medical Device Co. Ltd. While conducting the report, we have

learnt business market development strategies, situation analysis, market targeting, application of

the strategies and evaluation.

We appreciate your choosing the B2B issue of the report topic. If you need any additional

information or assistance in the overview of our report regarding the topic, please ask us.

Sincerely Yours,

“Elegant (VI)”

Section: A

Department of Marketing (14th)

Faculty of Business Studies

University of Dhaka

i

[ ]

Acknowledgement:

At first, we would like to thank almighty Allah for having me the opportunity to complete the

report. We also want to thank all the people, who have given their support and assistance and

extremely grateful to all of them for the completion of the report successfully. University of

Dhaka and JMI Group Limited both provided me with enormous support and guidance for my

Internship program to be completed successfully.

We would like to thank Mr., Marketing Manager, JMI Group Limited for his valuable time and

guidelines.

We would also like to thank Mr. Samir kumar Sheel, for his kind concern, valuable time, advice

and guideline of the report.

And finally we would like to thank our honorable course teacher, Usmita Afrose for providing us

with the opportunity to do the report in a B2B market.

ii

[ ]

Table of Contents:

No. Particulars Page No.

1 Executive Summary iv

2 Introduction 1

3 Background of the Report 2

4 Scope of the Report 2

5 Objective of the Report 3

6 Methodology 4

7 Overview of Surgical Device Industry in Bangladesh 6

8 Overview of JMI Syringe and Medical Devices 12

9 JMI Syringe and Medical Devices‟ Products 19

10 Strategies Followed by the Company 26

11 Competitive Analysis 29

12 JMI‟s Growth 38

13 JMI‟s Social Responsibilities 46

14 Limitations of the Study 47

15 Research Findings 47

16 Findings 56

17 Conclusion 58

18 Recommendation 58

19 References 59

iii

[ ]

Executive Summary:

Surgical Device market in Bangladesh has great prospect for the local manufacturer of surgical

device. More than 30,000 surgical devices are available in Bangladesh. Almost all devices are

exported from foreign country. So we can tell surgical device market as the unexplored B2B

market. Only four major companies are providing surgical devices in Bangladesh. If the

companies manufacture more surgical device then it generate huge profit to them. It also creates

more empowerment and also contributes to our national economy.

JMI syringe & Medical Device Company Ltd. has various kinds of surgical product, although it

is very difficult and risky for surgical device provider to develop new product, JMI has eleven

products. The company‟s age is not very old in comparison of its competitor. But still the

companies are doing well in surgical device market in Bangladesh. They are ranked as 2nd

as the

comparison of its competitor Opso saline.

JMI Syringe & Medical Device Limited has received tremendous response by institution buyer

and dealers. Institution buyers have gained confidence in their products for quality and

economics. This business shows considerable promise in contributing to the national economy of

Bangladesh. This report focuses on JMI‟s syringe & other medical devices their various

strategies, promotional activities, and their position in the market in comparison to the market

leader “Opso Saline” and so on.

JMI charges cost plus pricing for some of his products and for unique product like AD syringe

and urine drainage bag they charges skimming pricing. They have also promotion strategy like

other surgical device company in Bangladesh. The promotion campaign is inspiring the doctors

and their patient to use safe syringe, attending different seminar, fair related to pharmaceutical

product. But due to the Govt. prohibition they can‟t promote their product by the mass media.

iv

[ ]

Introduction:

Surgical Device market in Bangladesh has great prospect for the local manufacturer of surgical

device. More than 30,000 surgical devices are available in Bangladesh. Almost all devices are

exported from foreign country. So we can tell surgical device market as the unexplored market.

Only 4 major companies are providing surgical devices in Bangladesh.

We have chosen JMI syringe & Medical Device Company Ltd. as the business market or B2B

market as they manufacture products that are used for business purpose.

JMI has various kinds of surgical product, although it is very difficult and risky for surgical

device provider to develop new product, JMI has eleven products. The company‟s age is not

very old in comparison of its competitor. But still the companies are doing well in surgical

device market in Bangladesh. They are ranked as 2nd

as the comparison of its competitor Opso

saline.

JMI Syringe & Medical Device Limited has received tremendous response by institution buyer

and dealers. Institution buyers have gained confidence in their products for quality and

economics. This business shows considerable promise in contributing to the national economy of

Bangladesh. This report focuses on JMI‟s syringe & other medical devices their various

strategies, promotional activities, and their position in the market in comparison to the market

leader “Opso Saline” and so on.

JMI charges cost plus pricing for some of his products and for unique product like AD syringe

and urine drainage bag they charges skimming pricing. They have also promotion strategy like

other surgical device company in Bangladesh. The promotion campaign is inspiring the doctors

and their patient to use safe syringe, attending different seminar, fair related to pharmaceutical

product. But due to the Govt. prohibition they can‟t promote their product by the mass media.

This report also covers the findings and analysis based on the response of the users of surgical

device. Along with it, the report also covers SWOT analysis, benchmarking, Porter‟s five forces

model, bases for market segmentation, marketing mix elements etc. Using these, it will help JMI

syringe & Medical Device Company Ltd. to determine what sort of steps and strategies are to be

implemented by them in order to be the market leader. In addition, it will also help them to

1

[ ]

understand the needs and wants of their target audience and to provide them with the best

possible service.

Based on the current status on JMI Syringe & Medical Device Company Ltd, it can be said that it

has tremendous potential to be the market leader. Proper planning and implementation of

effective strategies will help them to achieve this objective within a short span of time.

Background of the Report:

JMI Group Limited is the one of the leading Manufacturer of surgical devices in Bangladesh and

it has been continuously in competitive position among all national and multinational companies

since 2003. But its journey to the growth and prosperity was very tough after the inception in

1999. This report, “Highest quality device provider or lowest possible price device provider

who wins in surgical devices market context in Bangladesh, a case study on JMI syringe &

Medical Devices Ltd.”, has been prepared to fulfill the partial requirement of BBA program as a

means of Internship program. While preparing this report, I had a great opportunity to have an in

depth knowledge of all the Marketing activities of JMI Syringe &Medical Devices Company

Ltd. It also helped me acquire a firsthand perspective of one of the leading Manufacturer of

surgical devices company in Bangladesh. It must be also noted that the data used here is truly

and strictly confidential and no one can use its components in full or partial. I would like to give

thanks to everyone who has helped and encouraged me in the process of preparing the report.

Scope of the Report:

This report is based on the product quality & price dilemma faced by of JMI Syringe &Medical Devices

Company Ltd. in Bangladesh. I also analyze the country leading surgical device companies‟ product

quality assurance system and pricing policy and compare the present Market situation of other surgical

device manufacturer company in Bangladesh.

2

[ ]

Objectives of the Report:

General Objective:

The main objective of this report is to know about and analyze the marketing strategies of the

company, marketing system of B2B market and make possible recommendation about the

market.

Specific Objective:

To understand the structure of JMI.

To know about B2B market, its nature, trend and its competition.

To understand the stakeholders of business products.

Building a brand position in the Market.

How to provide better customer service.

How it helps to gain more market share in the business market.

Knowing promotional campaign and new launches by JMI.

Establishing of a new business product/brand.

Knowing studying about the core elements and applications of business marketing.

Learning the marketing strategies used for such fields.

The value chain process of B2B markets.

3

[ ]

Methodology:

Research Design:

This report is an exploratory and descriptive one in type of research which briefly reveals the

overall “Price or Quality which one is better of JMI Syringe &Medical Device Company Ltd.?”

It has also been administered by collecting both primary and secondary data. Annual reports of

JMI Syringe & Medical Devices were the major secondary data sources in this regard. Ratio

analysis and trend analysis have also been used as major tools for the financial performance

analysis.

Sources of Data:

The information I needed to complete this report were collected from the following sources:

Primary Sources:

Primary data are collected through sample survey and interviews with the concerned party. It

included the fresh or completely new data sources collected for a specified purpose, such as

interviews, observations etc.

Secondary Sources:

Secondary data are collected through gathering of the published materials of the company,

industry sales report from the concerned authority. It included sources of existing/published data.

Data Collection Procedure:

I have collected the primary and secondary data in following ways:

Primary Data:

Practical work exposures from different sections of the company

Focus group meetings

4

[ ]

Face to face conversation with the respective personnel

Direct observation

Informal discussion

Secondary Data:

Annual reports of JMI Syringe & Medical Device Company Ltd.

Different notices and brochures of JMI Syringe & Medical Device.

Official Websites

Administrative manuals of the company

Various reports and articles related to the study

Different books, newspaper, magazine etc.

Tools used for Analysis:

Quantitative and qualitative data were collected and analyzed according to acceptable standards

of practice. Different tables and graphs were used to make the data meaningful and comparable.

Qualitative data were analyzed rationally and in comparison with current market condition.

Necessary percentages and averages were calculated and the analyzed results were put down step

by step. I have used two major tools to analyze the financial performance of JMI Syringe &

Medical Device Company Ltd.

5

[ ]

Overview of Surgical Device Industry in Bangladesh:

Surgical device industry has grown in Bangladesh in the last two decades at a considerable rate.

Its healthy growth supports development of auxiliary industries for producing glass bottles,

plastic containers, aluminium collapsible tubes, aluminium PP caps, infusion sets, disposable

syringes, and corrugated cartons. Some of these products are also being exported. Printing and

packaging industries and even the advertising agencies consider pharmaceutical industry as their

major clients and a key driving force for their growth.

The sector consistently creates job opportunities for highly qualified people. Many established

entrepreneurs of today started with pharmaceutical companies in the country. Pharmaceutical

companies are either directly or indirectly contributing largely towards raising the standard of

healthcare through enabling local healthcare personnel to gain access to newer products and also

to latest drug information.

Following the Drug (Control) Ordinance of 1982, some of the local pharmaceutical companies

improved range and quality of their products considerably. The national companies account for

more than 65% of the pharmaceutical business in Bangladesh. However, among the top 20

companies of Bangladesh 6 are multinationals. Almost all the lifesaving imported products and

new innovative molecules are channeled into and marketed in Bangladesh through these

companies. Multinational and large national companies generally follow current good

manufacturing practices (GMP) including rigorous quality control of their products. The Drug

Act of 1940 and its rules formed the basis of the country‟s drug legislation. Unani, ayurvedic,

homeopathic and biochemic medicines were exempted from control under the legislation. The

pharmaceutical industry was dominated by the foreign companies at that time. Even in the

allopathic market there were extemporaneous preparations dispensed from retail pharmacies.

The surgical device industry, however, like all other sectors in Bangladesh, was much neglected

during Pakistan regime. Most multinational companies had their production facilities in West

Pakistan. With the emergence of Bangladesh in 1971, the country inherited a poor base of

surgical device industry. For several years after liberation, the government could not increase

budgetary allocations for the health sector. Millions of people had little access to essential life

saving medicines. With the promulgation of the Drug (Control) Ordinance of 1982 many

6

[ ]

medicinal products considered harmful, useless or unnecessary got removed from the market

allowing availability of essential drugs to increase at all levels of the healthcare system.

Increased competition helped maintain prices of selected essential drugs at the minimum and

affordable level.

In 1981, there were 166 licensed surgical device manufacturers in the country, but local

production was dominated by eight multinational companies (MNCs) which manufactured about

75% of the products. There were 25 medium sized local companies which manufactured 15% of

the products and the remaining 10% were produced by other 133 small local companies. All

these companies were mainly engaged in formulation out of imported raw materials involving an

expenditure of Tk 600 million in foreign exchange. In spite of having 166 local pharmaceutical

production units, the country had to spend nearly Tk. 300 million on importing finished

medicinal products. A positive impact of the Drug (Control) Ordinance of 1982 was that the

limited available foreign currency was exclusively utilized for import of pharmaceutical raw

materials and finished drugs, which are not produced in the country. The value of locally

produced medicines rose from Tk. 1.1 billion in 1981 to Tk. 16.9 billion in 1999. At present,

95% of the total demand of medicinal products is met by local production. Local companies

(LCs) increased their share from 25% to 70% on total annual production between 1981 and 2000.

In 2000, there were 210 licensed allopathic drug-manufacturing units in the country, out of

which only 173 were on active production; others were either closed down on their own or

suspended by the licensing authority for drugs due to non compliance to GMP or drug laws.

They manufactured about 5,600 brands of medicines in different dosage forms. There were,

however, 1,495 wholesale drug license holders and about 37,700 retail drug license holders in

Bangladesh. Anti-infective is the largest therapeutic class of locally produced medicinal

products, distantly followed by antacids and anti-ulcerants.

Other significant therapeutic classes include non-steroidal anti-inflammatory drug (NSAID),

vitamins, central nervous system (CNS) and respiratory products. A most remarkable progress

the local industry has made in recent time is the phenomenal increase in the local production of

basic chemicals. There are now 13 drug manufacturing units, which also manufacture certain

basic materials. These include Paracetamol, Ampicillin Trihydrate, Amoxycillin Trihydrate,

Diclofenac Sodium, Aluminium Hydroxide Dried Gel, Dextrose Monohydrate, Hard Gelatin

7

[ ]

capsule shell, Chloroquine Phosphate, Propranolol Hydrochloride, Benzoyl Metronidazole,

Sodium Stibogluconate (Stibatin) and Pyrantel Pamoate. However, most of these are confined to

the last stage of synthesis. There are three public sector drug manufacturing units. Two of them

are the Dhaka and Bogra units of Essential Drug Company Ltd. (EDCL), which is functioning as

a public limited company under the Ministry of Health and Family Welfare. EDCL produced

medicines worth Tk. 964 million in 2000. There are separate vaccines and large volume IV fluids

production units under the Institute of Public Health (IPH). The productions of both EDCL and

IPH are mostly used in government hospitals and institutions. In 2000, there were 261 unani, 161

ayurvedic, 76 homeopathic and biochemic licensed manufacturing units. They produced

medicines worth Tk. 1.2 billion in 2000.

One of the major positive impacts of Drug (Control) Ordinance is the rapid development of local

manufacturing capability. Almost all types of possible dosage forms include tablets, capsules,

oral and external liquids (solutions, suspensions, emulsions), ointments, creams, injections (small

volume ampoules/dryfill vials/suspensions and large volume IV fluids), and aerosol inhalers are

now produced in the country.

Physical distribution of pharmaceuticals in Bangladesh has evolved in a unique way. Unlike

other countries Bangladesh pharmaceutical industry is more retail oriented and bulk of

distribution is done by the companies themselves. Pharmaceutical companies distribute their

products from their own warehouses located in different parts of the country, as no professional

distribution house is available. Wholesalers play a limited role in this regard since companies

supply goods to both retailers and wholesalers. Export of pharmaceutical products is still in an

infant stage, although a number of private pharmaceutical companies have already entered the

export market with their basic materials and finished products. They export their products to

Vietnam, Singapore, Myanmar, Bhutan, Nepal, Sri Lanka, Pakistan, Yemen, Oman, Thailand,

and some countries of Central Asia and Africa.

The primary responsibility for drug quality control lies with the manufacturers. However, the

government‟s drug testing laboratories (DTL) and the Directorate of Drug Administration

(DDA) have the monitoring and supervising role. There are two government drug testing

laboratories. DTL at Dhaka is in the Institute of Public Health and the regional DTL at

Chittagong is under DDA. Drug administration is responsible for registration of drugs for

8

[ ]

marketing in Bangladesh and for inspection of premises and licensing. With its present set up

and inadequate strength, DDA often finds it difficult to carry out its very large volume of

assigned work. The national drug policy and the regulatory control policies are yet to achieve

best results for a healthy growth of the pharmaceutical industry. Because of the limited capacity

of the government‟s drug testing laboratories, the quality of products manufactured locally

cannot be uniformly ensured. Restrictions on patent rights discourage foreign investors to come

up actively in the pharmaceutical market in Bangladesh. Introduction of new research molecules

is difficult due to slow registration process and restrictions on patent protection. Although the

fixed mark-up system of pricing helped keep the prices of pharmaceutical products low, this

made it difficult to cover costs of marketing and distribution. The fixed mark-up system also

discourages some companies to invest for GMP and assurance of high quality production. Some

important therapeutic classes of the pharmaceutical market (antacids and oral vitamins) are only

open to the local companies even after 20 years of the drug ordinance. This policy is

discriminatory and also contrary to the announced investment policy of the government.

The annual per capita drug consumption in Bangladesh is one of the lowest in the world.

However, the industry has been a key contributor to the Bangladesh economy since

independence. With the development of healthcare infrastructure and increase of health

awareness and the purchasing capacity of people, this industry is expected to grow at a higher

rate in future. Healthy growth is likely to encourage the pharmaceutical companies to introduce

newer drugs and newer research products, while at the same time maintaining a healthy

competitiveness in respect of the most essential surgical devices.

Major Surgical Device Market in Bangladesh:

In surgical device market there are two types market in Bangladesh. The two types of market are:

a) Local market

b) Institution Market.

9

[ ]

Local market sales and institution market sales are different from others.

Existing Company of Surgical Devices:

In syringe industry, there are four company exists. The names of companies are given below:

Sl. No Name of the company

01. Opsonil

02. JMI SYRINGE AND MEDICAL DEVICES

03. SKYLAB Pharma

04. Acme Laboratories.

Local

Company,

6%

Multinationa

l Company,

94%

Local Company Multinational Company

10

[ ]

Market Share of Syringe Company in Bangladesh:

There are different national and multinational company exists in syringe industry. The strategy of

various industries is different. That‟s why the market structure is different.

•Acmi lab• Skylab Pharma

•Opsonil• JMI syring e & medical

devices

39% 46%

4%11%

11

[ ]

Overview of “JMI Syringe and Medical Devices”:

Company Profile:

JMI is a Korea Bangladesh joint venture enterprise. The company is an ISO 13485:2003 & CE-

1023 certified company. JMI strictly adheres to Good Manufacturing Practice (GMP). „JMI

quality policy‟ complies better health care assurance. JMI provides international standard

products to ensure global acceptance. JMI is the pioneer manufacturer of Auto Disable (AD)

syringe in Bangladesh. The company is the first time manufacturer of versatile forms of medical

devices, i.e.:

IV cannula

Blood Transfusion set

Intra Uterine Device

The company has high degree of needle sharpness ensures patient compliance. JMI is the

provider of Auto Disable (AD) syringe for expanded program on Immunization (EPI) and in

family planning of Bangladesh for administrating injectable contraceptives. JMI is the major

provider of medical/surgical devices in leading diagnostic centers, clinics, reputed hospitals,

govt./ non-govt. institutions and pharmaceutical industries. JMI is the inducer of ribbon pack

presentation in Bangladesh. The company is the provider of healthcare devices to reputed

National, Multinational and international organization. Patient-safety and user-satisfaction from

quality perspective are the topmost priorities of JMI. In conformity with recommendations of

global health authorities, JMI initiated “Awareness Campaign” regarding “importance of

injection safety” since 2005 in relevant forums. JMI has the diversified technical collaboration

with Korea, England and Japan to ensure optimum level of quality standard for national and

global marketing.

12

[ ]

Major Highlights of JMI Group:

Head office 7/A Shantibag, Dhaka-1217

Organization Type Syringe & Medical Devices

Operated By Management Governing Board

Core business activities Sells of Local and exported Syringe.

Sells of Local & exported medical devices e.g. IV

Cannula, Infusion set.

Sells of Pharmaceuticals Product

Sells of Nipro Product.

Others programs Arranging different programmed to conscious

Doctors to use AD syringe

Arranging workshop for inspiring the user to use JMI

product

Number of employees JMI employs around 1418 personnel.

Market Share Almost 37% market share in syringe business.

Almost 43% market share in other medical devices

Volume Sold Almost 6 million syringe in each year.

12 million medical devices

Distribution Channel 22 MIO (Medical Information Officer), who sells &

provides information about JMI product to

management level.

369 dealers countrywide

Factory & Warehouse Nowpara, Rajendrapur, Chauddagram, Comilla,

Bangladesh.

20,000 sft. Central Warehouse which situated in their

Head office 5th floor, packing & other handling

activities are done by them in their factory.

Major products Disposable syringe, AD (Auto Disable) syringe.

IV Cannula,

Infusion set

Scalp Vein set

Blood Transformation Set.

First Aid bandage.

Major Donor South Korea

Business type Joint venture

Year of Establishment 1999

Year of listed in

Chittagong Stock

Exchange

2003

Origin & Operating

Country

South Korea

Full name of

Organization

JMI syringe & Medical Devices.

13

[ ]

Mission and Vision of JMI:

Mission:

Vision:

Core customer values:

Manufacture and supply of quality medical & surgical appliances promoting self-

health care & subsequently establishing family welfare among the people thought

innovative technology

To be the leader of Medical & surgical appliance of

Health and family welfare sector

Our shareholders: By ensuring fair return on their investment thought

generating stable profit.

14

[ ]

Board of Directors and Corporate Management:

List of department of JMI and their Activities:

The different departments of JMI are:

1) HR & Administration

2) Finance

3) Commercial

4) Marketing and Sales

5) Product & Market Development (PMD)

Chairman

Md. Jabed Iqbal Pathan

Managing Director

Md. Abdur Razzak

Director

Md. Abdul

Majid Patwary

Director

Md. Abu Jafar

Chowdhury

Director

Mr. Kim

Director

Md. Abdul

Hoque

GM (HR &

Admin)

Sadekur Islam

GM (Marketing

& Sales) Md.

Showquat

Hossain

15

[ ]

Financial situation of JMI Syringe & Medical Device:

The operational highlights for JMI are given below:

Operational and Financial Highlights

Income Statement – 2011 at a glance

16

[ ]

Marketing and Sales:

Marketing Department maintaining their Daily or monthly work by the following Documents

The documents are:

1) Contract Record File (CRF)

2) Daily Call Report

3) Expense form

Packaging:

JMI have two types of packaging for their product.

a) Primary Packaging: there are four types of Primary packaging. They are:

- Ribbon Pack

- Blister Pack

- Hard Blister Pack

- Poly pack

b) Master Carton:

• Company (1200/1600)

• Local (2400)

17

[ ]

Warehouse:

JMI have two warehouses. Central warehouse is in the Comilla. And other warehouse situated in

their Head office. The size of their central warehouse is 15000 Sq. feet & the head office

warehouse size is 7500 square feet. In warehouse department maintain FIFO method for their

product because every product has it‟s expire date. So before ending expire date product has to

sell. So JMI maintain FIFO policy for their store product.

Product Market Development:

Responsibility of Product Market Development:

a) New product launching

b) Packaging materials

c) Regulatory affairs

d) Calculating production Capacity (Demand, Supply)

e) Quality enhance

f) Develop promotion Literature

g) International Marketing

h) Product drawing & specification/ product Data sheet

18

[ ]

“JMI Syringe and Medical Devices” Products:

Product List of JMI

The products of JMI are given below:

19

[ ]

The product of JMI is syringe and medical devices. There are two types of syringe.

Sl. No. Name of Syringe

01. Sterile disposable syringe (1 Ml, 3M, 5 Ml etc.)

02. Auto disable syringe (.05 Ml, .5 Ml etc.)

Sterile Disposable Syringe:

There are different kinds of disposable syringe produce by JMI. They are:

Major Function of syringe:

1) To administer medication directly to body circulation system.

2) To draw blood for diagnostic purposes

3) For vaccination purposes.

Name of Disposable Syringe

1 ml

3 ml

5 ml

10 ml

20 ml

30 ml

50 ml

20

[ ]

Users of Syringe:

1) Hospital

2) Diagnostic center

3) Doctor‟s chamber etc.

Sterile Auto Disable (AD) Syringe:

Characteristics:

This system cannot be used and so this is a useful for presentational transmission of blood borne

diseases.

Use of an AD syringe:

1) Vaccination

2) Preventive and curative healthcare purpose.

Different AD syringe

0.05 ml

0.1 ml

0.5 ml

1 ml

3 ml

5 ml

10 ml

21

[ ]

Insulin Syringe:

Purpose:

Used for management of diabetes by pushing insulin.

1) Insulin syringe 40 units

2) Insulin syringe 100 units

Other Medical Devices:

Intravenous Infusion Set:

It is used for direct infusion of liquid dextrose solution, nutritional product and medication to

body strength to vein.

22

[ ]

Urine Drainage Bag:

It is used for collection of urine through catheter applicable for critically ill patients.

First Aid bandage:

Medicated bandage to protect wound from external attack. It is used for stopping the blood &

help the skin not to damage.

I.V. Cannula:

I.V. Cannula is used to take saline in intravenous for different purpose.

23

[ ]

Blood Transmission Set:

Blood transmission set is used for transmit the blood.

Name of Raw Material:

Name of product Raw materials used

AD syringe Barrel-White

Plunger Gasket

Barrrel(Printed)

Blister paper,415 mm (white) Flim (420*90 MIC)

Poater (set)

Inner carton Master cartoon

Disposable syringe Barrrel-White JMI

Plunger JMI

Film (421*90 MIC) China Blister paper 415 mm (Print)

Barrel (Printed)

Insulin syringe PVC film for ribbon pack

Non Sterile (30G*5/16”) ribbon pack Sterile (30G*5/16”) ribbon pack

Assembling (30G*5/16”)

Maste batch for plunger

Gasket

Infusion set Inlet-Urine

IntelCap

Outlet Urine

Outlet Cap Transpareent film

White film

Tube (870mm)

24

[ ]

Urine drainage bag Inner poly urine Bag 10 pcs

Transparent Film(printed)

Bengin for Screen printing Master cartoon

I.V.cannula IV Cannula 18 G,1.3*45 mm

IV Cannula 20 G,1.1*32 mm

IV Cannula 22 G,0.9*25 mm IV Cannula 24 G,10.72*19 mm

IV Cannula unprinted paper 207mm

IV Cannula printed paper IV Cannula Master cartoon

Blood transfusion set Chamber for Blood (China) Air vient

Blood transfusion poly Bag

PVC Tube (1400mm) Blood Feeding tube

Suction catheter

Ryles tube Separator

Non-woven

Inner carton

Master carton

First aid bandage Sticker (imported)

Blister paper Freon

Silicoat

Eye gel cannula Eye Gel Cannula 22 G

Eye Gel Cannula 23 Gel Gasket3cc Elistoma (imported)

Stopper

25

[ ]

Strategies Followed By the Company:

Pricing Strategy (A dilemma for JMI):

Basis of Pricing:

1) Cost of raw materials

2) Cost of packing

3) Manufacturing cost

4) Cost of manpower involvement.

5) Cost of taxes to be paid as far govt. rate. (VAT, Tax)

6) Cost of bank interest

7) Cost of transportation

8) Cost of distributor

9) Cost of PMD

10) Cost of R & D

For finalization of price manufacturers proposal is validated by drug administration. Trade price,

VAT, and MRP are fixed. So price of all products are control by the relevant authority of the

Govt.

The pricing method which is followed by JMI is Cost Plus pricing method & Skimming Pricing.

The cost plus pricing method calculating the all the cost of production and then adjusting the

profit and determine the final price of the product.

There are two steps which form this approach. The first step involves calculation of the cost of

production, and the second step is to determine the markup over costs.

26

[ ]

Calculation of Cost of Production:

The total cost has two components: Total Variable cost and Total fixed Cost. In either case, costs

are computed on an average basis. That is

AC = AVC + AFC

Where,

AVC = TVC /Q

AFC = TFC /Q

AC= average cost

AVC= Average variable cost

AFC=Average fixed cost

TVC=Total variable cost

TFC=Total fixed cost

Q=Quantity (the number of units produced)

In this approach, the quantity is assumed. In cost-plus pricing we use quantity to calculate price

but price is the determinant of quantity. To avoid this problem, the quantity is assumed. This rate

of output is based on some percentage of the firm‟s capacity.

Determining the Markup over Costs:

The objective of this approach is to set prices in a manner that a firm earns its targeted rate of

return. Now, if that return is Rs.X of total profit then the markup over costs on each unit of

output will be X/Q and then the price will be: P = AVC + AFC + X /Q.

27

[ ]

Comparison of Price Rate in Surgical Device Market:

Product Name JMI Price Opsonin Price Monomedia

Price

SKYLABPHARMA

Insulin syringe 6.50 4.55 4.20 4.00

Disposable

syringe

3.65 3.2 3.1 2.9

Scalp vein set 4.00 3.8 3.9 3.7

Infusion set 13 Not available Not available Not available

First Aid

Bandage

.62 0.5 .5 .45

Urine drainage

Bag

9.67 Not Available Not Available Not Available

Blood

transfusion set

13.20 Not Available 10 Not Available

IV Cannula 14 Not Available Not Available 12

28

[ ]

Competitive Analysis:

Industry Analysis:

To analyze industry Porter has developed the following 5 forces model. On the basis of this

model JMI is analyzed as the following:

Figure: Porter 5 Forces Model

1. Rivalry Among Existing Firms:

This force recognizes the active competition among industry members helps to determine

industry performance since we have selected JMI syringe and medical devices as our industry

analysis and in this regard we have found strong competitor of JMI. The main competitors for

the JMI are-

Threat of Substitute

Products or Services

Barriers to Entry

Bargaining Power

of Suppliers

Bargaining Power

of Buyers

Rivalry among Existing

Competitors

29

[ ]

i. Opso Saline

ii. Skylab

iii. Acme lab

There is acute competition being noticed among these industries. At present JMI holds the leader

position in the market because of various reasons:

Widening the geographic market.

Selling their products not only to institution but also local market.

Lowering variable cost relative to fixed cost.

Increasing their product Line.

No of marketing information offices.

2. Threat of New Entrants:

This force highlights the possibility of new competitors entering the market. In our case, JMI is

facing strong threat of new entrants. As there are more than 30,000 products in the market, but

JMI produces few of them. Most of the existing products are exported from the foreign market

by various industries and exporter that may impact in the production of JMI. Moreover, Acmi lab

may also be concern factor for JMS, because Acmi lab tries to produce more products than JMI

and in many cases Acmi lab tries to provide their products more efficiently.

3. Threat of Substitute Products:

This force considers the potential impact of substitutes. New products that satisfy the same

customer value requirement are important sources of competition. In our case, JMI faces less

threat of substitute products.JMI is only substitute product is vaccutainer in lieu of syringe

became vaccutainer causes less pain than syringe at the time of pushing syringe and drawing

blood from the body, Apart from JMI, most of other industries produce vaccutainer as well as

traditional syringe.

30

[ ]

4. Bargaining Power of Suppliers:

The forth force is the power that suppliers may be able to exert on the producers in an industry.

In our case, JMI faces strong bargaining power of suppliers. As JMI imports most of its raw

materials from South Korean surgical device market where it competes with many suppliers to

purchase raw materials. The main reason for this competes is less number of suppliers than

buyers exist in South Korean Market.

5. Bargaining Power of Buyers:

Finally buyers use their purchasing power to influence their suppliers. In our case, Customers

have less flexibility in terms of purchasing JMI‟s products because most of the product‟s price is

fixed by the authority. So, customers have less chance to bargain with JMI.

Comparison of Two Competitors:

There are different basis of comparison of the competitors in surgical device market in

Bangladesh. The following points show the basis of comparison of surgical device market.

Manpower:

Normally, Companies who have more manpower can do better than others. But if the manpower

is not efficient then it is difficult for the company to promote the product. Efficient manpower

can promote the company‟s product well which boost the companies‟ market share.

Transportation:

Transportation facilities can help to smooth distribution system. If the company has more

transportation smooth distribution is possible but it also increases the cost of the company

because more drivers needed for the cars and more fuel oil needed for the car. So the company

must be decided which one is best for him and take the right decision.

31

[ ]

First Comer:

The first comer is the best eater of any market. The companies who come to the market first can

get the opportunity to fix the skimming pricing and get the profit layer by layer.

More Product Line:

The company who has more product lines has got the best opportunity to fix the bundle price and

sells the all product of his company to other companies. This policy also creates him the fixed

satisfied customer and helps to do well in long term business.

Supply Chain:

Supply chain is more talk about issue in current business world. So the company who has strong

supply chain can do well in any business. In surgical market context supply chain is also

important to provide the product to our ultimate customers.

Quick Delivery:

Quick delivery system can help the surgical device company to satisfy their customer and build

strong customer relationship with their customer. Any company who fail to provide their

customer demand product in time have a negative impact of the company and may be lost the

customer.

Certification:

The company who has the international certificate about their product quality creates good will

& help to get new customer. In surgical device market quality product has the value of the

institution, hospital & diagnostic centre. So the company has some certificate like ISO & CE

certificate help to prompt their product.

Packaging:

Packaging can create the positive impression for the customer. Here, one important example can

be discussed that Dispo Vin is the most common brand for insulin syringe in local market

because of their appealing looking. Local market insulin syringe of JMI is not prominent because

32

[ ]

of their poor packaging although its quality is best in local market. So base on this example we

can said that the packaging is important issue in surgical device market.

Relationship:

Relationship among the dealer and the ultimate customer can be important for the companies to

build the long term relationship of the customer. If the relationship is not good with customer

then the customer are dissatisfied and the company lost its Customer.

Opsonin (Major Competitor of JMI):

Opso saline is the major competitor of JMI. Opsonin pharmaceutical companies sister concern is

opso saline. The brief history of the company is given below:

Marketing Strategy of Opso Saline:

The opso saline company‟s marketing strategy is to sell more products in fewer prices. They

have the pharmaceuticals company so they do not need to depend on dealer like JMI. They have

more than 150 Depo in across the country. In these depo they provide their syringe & other

surgical device. Their Medical Information Officer provides pharma product and syringe

together with a bundle price. The local customer need not think about the quality of the product.

They only think about the price. So Opso provide less price product to the local customer. This

strategy boosts their sell.

Another important point is the opso saline has unique product like naussle which is used for this

product has lots of demand in the pharmacy now-a-days. One year earlier price of the naussle is

only 15 tk. But now this product is 50-60 tk. Opso saline provide this product to local market and

force the local pharmacy shop to purchase syringe with naussle. This is another important reason

why the opso saline is no. one position in surgical device market i9n Bangladesh.

33

[ ]

Advantage of dealing with local Market:

Market Share:

In syringe market major market share are containing in local market. That‟s why the company

who holds the local market can dominate the maximum market share of this industry.

Huge Profit:

More sell create huge profit for opso saline. We know by economics, if you sell more than your

profit is lot higher than any one.

Disadvantage of dealing with local market:

Bargaining price:

The price rate is not fixed. Always there are bargaining with the price. The customer wanted

lowest price product but they do not think about the quality of the price.

Delay payment:

The payment policy in local market is not fixed. The payment is at delay. Sometimes it is very

difficult to collect payment for the local market. It increases the cost of company. The cost

increases because the companies have to pay more amounts to their MIO to collect payment.

Marketing Strategy of JMI:

Marketing strategy of JMI is to target the institution market. In institution market the customer

are educated. They never bargain with the price. They are always expecting good quality for

their supplier. The philosophy of the seller (JMI) & the purchaser (institution customer) are

similar that‟s why they can make business themselves.

34

[ ]

Advantage of dealing with institution Business:

There are some advantages with dealing with institution Business. The advantages are:

Quick payment: In Institution market JMI provides their product in institution at 1st to 20

th of any

month. Then they collect the money from 20th

of any month. So it is comparatively save business

than local market business.

No bargaining: There is no bargaining problem in institution market. Quality product is the

major issue for them.

Disadvantage of dealing with institution Market:

There are hardly any reasons with the disadvantage of dealing with institution market. The

institution market is safe for business.

Why Opsonin lead the local Market:

Low price:

Opsonin is the low price provider of the surgical devices market in Bangladesh. A survey by the

Drug Administration of Bangladesh shows that 55% syringe is selling as yearly basis in local

market in Bangladesh.

Manpower:

Opsonin has more than 200 MIO in different region in Bangladesh Where JMI have only 27.

That is the difference why JMI cannot compete with opso saline in local market. In local market

the customer demand is that they want MIO come to them and provide them cheap price product.

Because of shortage of Manpower it is very difficult for JMI to cover the local market. That‟s

why JMI losing market shares.

Product line:

The opso saline has more product line than JMI. There saline has huge sell in local market. There

naussle is also another product which sell is highest amount in local market.

35

[ ]

Blackmail the local pharmacy:

They blackmail the local pharmacy to purchase their syringe in exchange of their saline and

naussle. The local market their naussle has huge demand. Each nausle sell per piece at Tk 50.

But opso sell them at Tk 20. This huge profit inspires the local customer to purchase opso

product.

Gift giving:

Opso saline sells strategy is to gift giving to their customer. The gift giving policy is very

important to Pharmaceuticals Company to make good relationship with their customer.

Strong distribution channel:

Opso saline has strong distribution channel. The number of MIO is huge. So that there

distribution channel is more powerful than JMI,

Sufficient Depot:

They have pharmacy product so that they have the sufficient depot. The sufficient depot helps

them to provide product in end consumer.

Why JMI lead the Institutions market:

Quality product:

Institution buyer prefers the issue needle sharpness, proper silicon oil and sterile product issue.

All the fact is consider by JMI. JMI product has best quality.

- Needle Sharpness: There needle is imported from Germany. So that the quality of

JMI needle is best in Bangladesh.

- Proper Silicon Oil: The amount of silicon oil is very important issue in syringe. The

proper amount of silicon provides better care to the patient.

36

[ ]

- Sterile Product: The product o JMI is sterile. The sterile product ensures highest

safeness to the patient.

For these qualities institution buyer purchase JMI product.

Timely delivery:

The product delivery by the JMI is very time to time. That‟s why the institution buyer are being

happy to them.

Korean Brand:

Korean brand helps them to promote their product quality. Customer knows about the product as

the name of Korean company. So that they think that the quality of the product is very good.

Distribution:

JMI also have lots of dealer who helps them to make their distribution channel strong. They also

help them to make their cost low.

Big supplier of Government to surgical device:

They are the involved with the EPI program which help them to create their good will. For this

institution purchaser inspire to purchase JMI product.

Strong supply chain:

Strong supply chain is also another reason why JMI get the institution customer. Strong supply

chain also helps them to get lots of work. The supply chain for JMI is as follows:

Certification:

They have the CE and ISO certificate. This also encourages them to purchase JMI product.

37

[ ]

JMI’s Growth:

AD syringe is the prospect of JMI group. If AD syringe is habituated in Bangladesh then JMI as

the first comer of AD syringe in Bangladeshi surgical device market it can bring huge profit for

the company. Already JMI exported AD syringe in Germany & Netherland.

AD syringe:

AD syringe is the most prospects for JMI. If the use of AD syringe is habituated in Bangladesh

then the sell of AD syringe of JMI is Increase and they can earn huge profit.

Export Business:

JMI has the export business in Germany, South Asia & Middle East. They have the plan to

increase their business further.

Competitor Pricing Strategy:

In response to cost plus pricing Opsonil has penetration pricing. The price of their product is

very low. That‟s why in local market they are doing well. Cause the client of local market

demanded only low cost product. They have huge sell because they provide very low cost

product.

Distribution of JMI:

Company has self-distribution centers in different location of the country for distribution of all

goods as far order placed by the sales force. Moreover company has selected number of dealers

at upazila and district head quarter level for smooth distribution of product where company‟s

self-distribution network is not available. JMI has the two types of distribution. The two types of

distribution are:

38

[ ]

The MIO have the responsibility to do the job of daily basis to visit of the different company to

promote and sell their product. This is the part of their distribution strategy. The lists are given

below:

Distribution channel

Dhaka city Local area

39

[ ]

Distribution Management of JMI:

There are two typed of distribution management followed by JMI.

The supply chain of JMI for the whole country:

Inside Dhaka City:

Inside the Dhaka city JMI has the distribution channel like this. This is very simple distribution

strategy and makes sure fastest delivery.

Raw materials

comes from south

Africa

Lands to the

chittagong sea port

Main factory

situated in comilla

Packaging to the main

factory

store the product in warehouse

in Dhaka city

Distribution to whole

country

Production

(comilla)

JMI Warehouse

Using Own transportation system

Receive by the

Customer

40

[ ]

Outside Dhaka City:

Outside Dhaka cit y the distribution is more completed. Because there are more channel member. This is

why some times distribution sometimes collapses in JMI in outside Dhaka city.

Production (Comilla)

JMI Warehouse

Using Own

Transport

(Dhaka)

Using vendor

Transport system

(cost bear by

JMI)

Receive by

Dealer

Customer (cost bear by Dealer)

41

[ ]

JMI Promotion Strategy:

To generate demand level of company‟s product there exist a full set of marketing team with

coverage ad major market areas of the country.

Activities:

For this following tools are used.

a) List of customer with their complete mailing address.

b) Customer profile.

c) Objective settings.

d) Literature highlighting features and benefits of the product.

e) Samples for fair trial purposes.

f) Gift items (Pen, Pad, Pen holder etc.) which are user friendly

g) Seminar.

h) Workshop

i) Entertainment

j) Frequent one to one customer visiting

Thus JMI maintain their promotional strategy. Their promotional active ties like Television

commercial is difficult because the strong prohibition of the Govt. authority.

BCG Metrics of JMI Company:

BCG metrics is the way of identifying a company growth situation by the four elements,

The elements are:

42

[ ]

1) Question Mark

2) Cash cow

3) Star

4) Dog

In BCG Matrix the current position of JMI is in STAR. Year by year position of JMI company is

the given below:

Sl. No Company position in BCG Metrics Year

01. Question Mark 1999-2003

02. Star 2004-2009

03. Cash cow 2010-Now

43

[ ]

Customer of JMI Company’s product:

There are mainly three types of customer for JMI. In outside Dhaka city dealer are the main

workers for JMI. Almost 300-400 dealers are working for JMI. There are 68 institution company

purchasing JMI product.

Sl. No Name of customer

01. Dealer

02. Institutional customer

03. Depot

The Major Institution Customers Are:

SL. No. Name of company

01. Square pharmaceutical

02. Square Hospital

03. Apollo Hospital

04. Lab Aid hospital

05. Novartis Bangladesh

06. ACI ltd.

07. Etc.

44

[ ]

Target Market for JMI:

JMI main target market is the institution market. They are also dealing with dealer who provides

their surgical device in local area. They are also dealing with whole sell market. In Dhaka city

Mitford is the one of the huge whole sell market.

Segmenting Strategy:

They are segmenting there market into two market.

a) Local market.

b) Institution market

45

[ ]

JMI’s Social Responsibility:

JMI dreams of a prosperous and strong nation and thus JMI's commitment to the society is an

integral part of its business. JMI intends to build a better Bangladesh by empowering people and

by providing support towards the sustainable development of the community.

In line with Government's development plan as well as its own Corporate Responsibility (CR)

philosophy, JMI engages itself in various types of Corporate Responsibility (CR) programs.

Through its CR initiatives, JMI intends to contribute towards the development of socio economic

and ecological condition of the country through enriching people's lives focusing on their

primary needs as well as conserving the unique culture & Heritage of Bangladesh.

JMI supports global business community to uphold social issues in business operations and being

convinced of the benefits which will accrue out of voluntary adherence to universally recognized

social values in transaction of businesses.

JMI considers the interests of customers, employees, shareholders, communities, and ecological

considerations in all aspects of their operations. This obligation is seen to extend beyond their

statutory obligation to comply with legislation.

JMI's activity goes well beyond the sphere of business. As socially conscious and responsible

corporate body JMI is committed to the improvement of the society as a whole. JMI helps many

NGO's in their effort to make available healthcare to the disadvantage population of the Country.

It sponsors programs to build awareness on the healthcare need.

46

[ ]

Limitation of the Study:

This report covers all the aspects of marketing environment from various perspectives. This

report also gives an overview about the company as well as its industry. The mission and goals

of the company, the functional departments, the strategies etc. will be illustrated. This report will

be prepared with the assistance, cooperation and negotiation of the respected employee,

manager, customer and supplier group. We will try our best to take the opportunities to know and

learn about various activities of the “JMI Syringe and Medical Devices.” As a medical assistance

institution, it operates and covers a large industry to study and understand the scope,

environment and area of marketing. We will also analyze the country‟s leading surgical device

company‟s product quality assurance system and pricing system and compare the present market

situation of other surgical device companies. It will also help us in the upcoming future.

Although we have various opportunities and scope we may have a few limitations like access to

gaining permissions to grab some opportunities, limited facilities for report etc.

Research Findings:

We have conducted a survey about JMI syringe & medical device Ltd. I have selected 50

respondents from them different respondent like institutions, pharmaceuticals are exits. The

survey shows various outcomes. Among them important issue are presented graphically.

1) Are you satisfied about the quality of product?

Highly satisfied Satisfied Neutral Dissatisfied Highly dissatisfied

62% 7% 12% 4% 15%

47

[ ]

Users of JMI product are highly satisfied about the quality of the product.

2) Why you are highly satisfied about JMI product?

Needle sharpness Packaging Proper cilicon oil Sterlied product

70% 15% 4% 11%

48

[ ]

Needle sharpness is the main reason for satisfying the customer of JMI.

3) Why you are not interested to purchase JMI product?

Pice issue Quality issue Distribution issue Service issue

64% 12% 15% 9%

0%

10%

20%

30%

40%

50%

60%

70%

80%

Needle

packaging

proper cilicon oil

49

[ ]

Price issue is the main reason why the local customers are not interested to purchase JMI

product.

4) Are the price of the product of JMI is too high?

Yes No No comment

49% 39% 12%

Here findings are the price of the JMI product is too high.

0%

10%

20%

30%

40%

50%

60%

70%

price issue

quality issue

distribution

servicce

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

yes

No

NO comment

50

[ ]

5) Are the JMI having smooth distribution channel?

Strongly agree Agree Neutral Disagree Strongly disagree

34% 21% 10% 22% 13%

JMI is still unable to maintain smooth distribution channel.

6) Are the distributor are satisfied about JMI?

Strongly Agree Agree Neutral Disagree Strongly Disagree

25% 42% 3% 15% 15%

0%

5%

10%

15%

20%

25%

30%

35%

strongly disagree

dsagree

neutral

agree

strongly agree

51

[ ]

Most of the distributors are happy about JMI. But unhappy rate is not bad at all. Companies

should consider the fact.

7) Why institution buyer purchase JMI product?

High quality Timely deliver

79% 21%

High quality is the main reason why institution buyer purchase JMI product.

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

strongly agree

agree

neutral

disagree

strongly disagree

0%

10%

20%

30%

40%

50%

60%

70%

80%

high Quality

timely Deliver

52

[ ]

8) Is JMI‟s warehouse space sufficient?

Strongly

Disagree

Disagree Neutral Agree Strongly

Disagree

62% 10% 3% 7% 18%

JMI‟s warehouse space is not sufficient.

9) Are JMI‟s number of transportation vehicle is enough?

Strongly

Disagree


Disagree

52% 20% 3% 12% 13%

0%

10%

20%

30%

40%

50%

60%

70%

Strongly Disagree

Disagree

Neutral

Agree

Strongly Agree

53

[ ]

JMI‟s vehicles are not sufficient for their distribution management.

10) Is JMI‟s Dealers number sufficient for providing product to whole Bangladesh?

Strongly

Disagree


Disagree

67% 23% 1% 6% 4%

JMI should increase the number of dealer.

0%

10%

20%

30%

40%

50%

60%

Strongly Disagree

Disagree

Neutral

Agree

Strongly Agree

0%

10%

20%

30%

40%

50%

60%

70%

Strongly Disagree

Disagree

Neutral

Agree

Strongly Agree

54

[ ]

11) Do you think the incentive of MIO should increase to spirit the sales activities?

Strongly

Disagree


Disagree

15% 17%% 5% 40% 23%

Incentive of MIO is not sufficient.

12) Do you think the dealers (Important media of sales force for JMI) are getting sufficient

profit by JMI?

Strongly

Disagree


Disagree

72% 17%% 1% 3% 7%

0%

5%

10%

15%

20%

25%

30%

35%

40%

Strongly Disagree

Disagree

Neutral

Agree

Strongly Agree

55

[ ]

Dealers are not getting proper profit.

Findings:

1) Needle sharpness is the main reason for satisfying the customer of JMI:

Users of JMI product are highly satisfied about the quality of the product. 62%

respondent told that their product is highly satisfied to the end user. The reason for that is

the needle sharpness & proper silicon of their needle.

2) Dealers are not getting proper profit:

Dealers are not getting proper profit. Earlier the profit rate of the dealer is 10%-12%.

Now because of the increase of the cost of the product the profit rate of the dealers are

decreased by the 4% to 5%. In any Business this rate never inspire you to do the business.

So the dealer of JMI is decreased in alarming rate. To make them satisfied JMI need to

increase the profit rate of dealer.

3) Incentive of MIO is not sufficient:

Incentive of MIO is not sufficient. The MIO is the key players who have done the

promotion activities to the company. The incentive rate is not satisfactory level to the

0%

10%

20%

30%

40%

50%

60%

70%

80%

Strongly Disagree

Disagree

Neutral

Agree

Strongly Agree

56

[ ]

MIO. The incentive rate should increase to make happy to the MIO and get speeded their

activities.

4) JMI‟s warehouse space is not sufficient:

JMI‟s warehouse space is not sufficient. The previous warehouse is 10000 square feet

which is situate in Uttara. But because of the transportation problem they attached the

warehouse to the head office. The present warehouse space is 7500 square feet. The space

is not sufficient to bring the all product to this warehouse.

5) High quality is the main reason why institution buyer purchase JMI product:

High quality is the main reason why institution buyer purchase JMI product. JMI product

has maintained the sharpness of needle & proper silicon oil. This issue helps them to

provide better quality product. 79% respondents agree that the product of JMI is high in

quality.

6) Most of the distributors are happy about JMI. But unhappy rate is not bad at all.

Companies should consider the fact:

Most of the distributors are happy about JMI. But unhappy rate is not bad at all. 25%

respondents are agreeing to the following term. Companies should consider the fact.

Distributors are helping to provide the product to the end user. They have lots of

importance towards the company.

7) The price of the JMI product is too high:

Here findings are the price of the JMI product is too high. 49% respondent told that price

of the JMI product is too high. Where opo saline syringe price is 3 tk. JMI syringe price

is 6 tk. So it is competitively high rate and for this issue they are not considering to

purchase JMI product.

8) Price issue is the main reason why the local customers are not interested to purchase JMI

product:

57

[ ]

Price issue is the main reason why the local customers are not interested to purchase JMI

product. 64% respondent told about the price issue. Price issue is the main reason why

they are not interested to purchase JMI product.

Conclusion:

As a surgical device company JMI has wonderful chance to do well and go to the number one

position in this industry. They have lots of prospect like AD syringe, Urine Drainage Bag &

copper tea etc. But the management body should consider warehouse issue, MIO‟s proper

incentive, and dealer satisfaction & institution market problem with great concern. Otherwise all

the success achieved by the company in recent years can go to vein. So the company should deep

concern on the above issue and take necessary to built strong position in surgical device market

in Bangladesh.

Recommendation:

Throughout the research and study of the report on JMI we have found lots of issues which may

they consider for improving their marketing strategy. The recommendation is given below:

a) Should appoint new dealer: Increasing the amount of dealer that‟s why they expand

their business.

b) Enlarge the sale-force: Increasing the number of MIO that‟s why they can able to visit

the entire target customer.

c) Giving more emphasis on customer: JMI need to consider more about the local

customer.

d) Enlarge the product line: JMI should create new product line like Opso Saline to

compete with them successfully.

58

[ ]

e) Restructuring motivational package: Managing body of JMI should increase the salary

of their employee because the employee is not satisfied with the current salary level.

f) More promotional activities: Promotional activities are not strong. They need to

improve their promotional activities by taking part different seminar.

g) Warehouse: Warehouse space is another issue which should increase by the JMI.

Warehouse space increase helps them to protect their valuable product and make their

distribution channel smooth and better.

JMI should think about the above issue to be the number one position in the surgical device

market context.

References:

01. Kotler, Armstrong. Principles of Marketing Pearson education, 2011.

02. Malhotra, Dash. Marketing Research, Prentice Hall 2010.

03. JMI Group Limited. 12 March, 2012. JMI Group Limited. 10 March. 2012

http://www.jmigroup-bd.com/

04. Opso saline Limited 12 March, 2012. Opso Saline Limited. 10 March. 2012

.http://www.bijoy.net/demo/demo_site/opso/opso.html

05. Directorate General of family Planning (Ministry of Health & Family Planning)

http://www.dgfp.gov.bd/

06. JMI Annual Report-2011, 2010 & 2009

59

http://www.jmigroup-bd.com/

http://www.bijoy.net/demo/demo_site/opso/opso.html

http://www.dgfp.gov.bd/

Report on Business Marketing Research on JMI, a B2B Market [Elegant (VI)]

Business

Transcript of Report on Business Marketing Research on JMI, a B2B Market [Elegant (VI)]