Pantozol is a brand of pharmaceutical prescription product with active ingredient pantoprazole invented by company called Nycomed and produced in Germany. It is categorized as anti ulcerant drug At this present time, it is marketed in many countries. In Indonesia, Nycomed licensed Pantozol to PT Pharos Indonesia (PT Pharos) a well-established domestic investment pharmaceutical company that has good reputation amongs pharmaceutical companies in Indonesia, as their local partner to market the product in Indonesia.

Pantozol iv was launched by PT Pharos in year 2002. Since then, Pantozol iv has acted as the growth engine for PT Pharos Indonesia. With approximately 21% of ethical business sales and 12% of total company sales in 2008, Pantozol iv has become the biggest sales revenue and profit contributor to PT Pharos among others Pharos products.

However, the recent growth of the new players that entered the market had forced Pantozol iv to grow below the average growth of the class. If the current conditions remain the same, Pantozol iv would loss its market share further, as well as its opportunity to generate the value for the company. In the mean time, the "me too" or copy products with the same generic pantoprazole will soon be available in the market and become further threat for Pantozol iv.



Considering the above said conditions, this project performed market analysis of current conditions of Pantozol iv, in order to recommend the necessary marketing strategy to ensure the continuation of the products as the company's growth engine. It is expected that the recommended strategic actions would be possible to be executed effectively by PT Pharos to secure its target and achieve annual 26% growth in sales units or equivalent with 36% in sales value for pantozol iv in year 2009, and 20% in sales units and 34% in sales value in 2010. The analysis was done on data collected from field market survey, PT Pharos sales historical data and the data from surveyor IMS IHPA.

The field market survey was conducted using a quantitative method. The survey was done on the respondents that consist of pysicians (internists and intensivist) and medical rep. Physicians are considered as the customers for pantozol iv since even they are not the end consumers of the products, their role is more important than the patients to determine the number of product sold.



The analysis of field market survey data indicated the issues on customer retention became the concerns and the strong possibility of the cause of the problems, especially since the price was indicated as not sensitive factor for the customers to choose the products. While the visit of Medical Representative is the most useful source for the customers to get up to date information about the product, the survey indicated Pantozol iv scientific information is required to be improved.

The analysis on internal data and surveyor data indicated that PT Pharos was actually having a sales growth in Pantozol iv, but market experienced bigger growth than the company. The entering of new players in the market has increased the competition among the existing players for market share. These facts indicated that Pantozol iv is already in the range of "slow growth to maturity" stage of its product life cycle, while the market is considered an attractive and growth market.

The TOWS analysis showed that the primary growth opportunity lied in customer loyalty and the type of the customers who seek the quality over the price, while the primary thear will come from the copy drugs with lower price.

Considering the above said analysis, the recommendation is given to PT Pharos to take Defensive Marketing Strategy that focusing its programs for maintaining market share and to build customer retention. The recommended marketing programs that reflect defensive marketing strategy startegy is provided and covering customer programs (i.e. scientific program, Key Opinion Leader Program, Entertainment program, and community support), enhanced clinical trial program, program for field force (i.e. training * certification), and brand support program.

PT Pharos is also highly recommended to implement Key Account Management (KAM), as part of the defensive marketing strategy. KAM will supervise the execution of the said marketing programs for the high value customers (key customers). With customer retention as a prime goal, KAM aims to develop the nature of the customer relationship in order to enhance understanding and to identify further opportunities including the opportunity for products cross selling. Such models allow companies to build sustainable competitive advantages over rivals in a tight, focused manner, whilst erecting substantial barriers to entry against the competition. Detail proposals on KAM structures and financial view are given and showing the feasibility of the execution on the programs.







Research Location : PT Pharos Indonesia

Confidential until 2012