Pacific Business Review International

Volume 5 Issue 11 (May 2013) 98

Ziva Pharmaceuticals Exploring International

Markets for Expansion
Dr. Girish Taneja*, Dr. Mahesh Chandra Joshi**
Dr. Neeraj Gupta***, Avinash Kumar****
Ziva Pharmaceuticals Ltd. is a WHO-GMP & ISO- and not by personally visiting the markets under
9001:2000 certified company of India. They manufacture and observation and so conclusions presented though
market various dosage forms of injectables, tablets, capsules, thorough, may not be 100 percent reliable.
creams, oral suspensions, gel preparations and dry powders.
4. This study was based on secondary data only and such
Their pharma division offers medicinal preparations for
data may be obsolete or contradictory.
human health care for the vital segments like orthopedics,
gynecology, dermatology, allergies, gastro, respiratory and 5. Although core team tried its level best to consider
nutritional. genuine data and information with unbiased
approach but mistakes could be committed
The group is now a well established and leading player in the
unknowingly.
health care market of India, bringing regularly the innovated
products from its state of art R&D lab that is approved by Core Team was assigned this project to work on by the
DSIR (Department of Scientific and Industrial Research) the company as the company wanted to use the information
highest certifying authority in India. collected through this project to take a decision regarding the
international expansion they were planning on.
Ziva was keen to explore international markets for the purpose
of sales maximization. A cross functional team of Management Before the study began, Core Team carried out the SWOT
Trainees ( Core Team ) was constituted under the leadership of analysis for the company which helped in concluding that
Vikas who was MBA in Marketing and Finance along with there existed a lot of opportunities for the company to enter
basic qualification of B. Pharma. The team was assigned the new and upcoming markets because of the strengths it
task by the Company officials to analyze Middle East market possesses and fulfill its dream of entering into a mature market.
for the company. The company was in expansion mode and for The team first analyzed important markets of Middle East and
this the company had plans to enter in Middle East region for then focused on most potential market which was UAE.
Pharmaceutical formulations trade and to fulfill this purpose
Now as per the topic the environmental factors in Middle East
team had been assigned to explore Middle East Market.
particularly United Arab Emirates external environment like
The Core Team had thorough discussion with strategic heads political issues, economical issues, social issues and
of different departments including its CEO, Mr. Murti. Based technological issues for trade and doing business were analyzed
on this discussion, following objectives were set by team – primarily. UAE as a country had a lot of promising
environmental factors to help attract a lot of new players to its
1. To understand potential of Middle East Market for
market because the market over there is going through the
Pharmaceutical formulations and to know the factors
growth phase. The study on attractiveness of the Industry and
that affects the international environment for trade
the market to be entered was done using the Porter's Five
and expansion of business.
Forces model and some of the factors that came out positively
2. To formulate entry and marketing strategies for a out of this study are as under: -
Pharmaceutical formulation company which wants
1. Middle East market in Pharmaceutical sector is
to enter the United Arab Emirates market.
expected to grow rapidly to US$ 11 billion in the next few
The team could identify following limitations initially- years; hence a good opportunity exists for seizing a sizeable
market share by entering such a big market.
1. There were four members in the Core Team and all
were not much experienced. 2. Middle East pharmaceutical market is highly
protected by regulations–favorable to MNC and GCC
2. The time allotted for the study was limited.
(Gulf Cooperation Council) based generic manufacturing
3. This study is conducted using Internet as a medium units.
*Professor, Lovely Professional University, Phagwara ( INDIA)
**Associate Professor, Lovely Professional University, Phagwara ( INDIA)
***Lecturer, Lovely Professional University, Phagwara ( INDIA )
****Product Manager, TTK, Chennai ( INDIA )
99 Pacific Business Review International

3. There are only a few Middle East generic players, markets especially middle east (UAE to be particular), the Core
there is less intense local competition and there is a good Team used PEST analysis to know the market, Porter's Five
opportunity for JV –partnerships if innovative products forces model for conducting industry analysis and SWOT
are registered and marketed. analysis to decide on which strategy to use to make an entry in
international market and finally deciding on the marketing
4. Middle East's Ministry of Health takes less time for
strategy to be adopted to fulfill the research objective.
approvals of company's and product registrations for
dossiers submitted by GCC based generic pharma The team began by answering a few “W's” to begin with so as to
manufacturing units. embark upon a new journey of exploring new possibilities for a
new firm.
5. Segregated and dedicated antibiotics, non-
antibiotics, hormones, steroid manufacturing facilities The W's –These will help in analyzing the following points: -
exist in the market which makes it even more lucrative for
WHO: Who should be considered the potential customers for
the other companies to enter this market.
the company?
6. Availability of latest machinery, equipments,
Who should be considered the Potential prescribers of the
instruments, systems from reputed suppliers.
product range?
The company chose UAE as a market to enter as the country is
developing based on the governmental initiatives being taken WHAT: What information should be obtained from Internet
by their government to make United Arab Emirates as a and other sources of information available to the company?
trading hub for all trading activities. The Political, Social, Economical, Technological issues and
In the Pharmaceutical formulations trade industry there is a factors affecting the United Arab Emirates market. Finally
high degree of competitiveness for Pharmaceutical using the Five forces model to find out the factors that can
formulations trading companies which are using the affect the entry of the company in the UAE market.
differentiation strategy to enter the UAE market. The WHY: Why are we using internet as a medium to get
marketing efforts required for doing business at Dubai, UAE information from the online medium? Why is the marketing
were guided by forming marketing strategies, by basing the research project being carried out?
decisions on market and financial information available for
starting the business. Collecting the data by visiting all the places to be covered under
the scope of the project was not feasible so Internet as a
The hands on data indicated that UAE as a potential market medium was used to collect the data and research was
but the company wanted to know the exact market potential conducted to finalize the marketing mix for the company.
and what kind of strategies to adopt to sustain and expand in
market to enter for a long time based on the above analysis? Along with external analysis, the core team simultaneously
conducted the internal analysis of the company too which led
Beside finalization of targeted market, the core team also to team coming up with the below mentioned observations
worked on - from the analysis: -
• How to startup business office in Middle East  The firm's marketing and distribution set up covers
Region? the length and breadth of the entire Indian nation and
• Which factors will influence the trade to be also helps other countries to fight the diseases and
conducted? misery.

• From which place to begin the startup for trade and  Meticulously moving towards an endurable success in
for setting-up the office? emerging as a global player the firm has rightly
extended its wings into the world market with
• Which Marketing strategy to choose for doing trade enviable presence in African Countries along with an
in the international market? optimistic plan to expand its operations in middle
After two weeks of work core team had an important meeting east countries as well.
with Murti and Group Advisor, Pintoo Bose who had  Initiative has generated a formidable presence in
experience of about twenty five years in the area of Product therapeutic segments like enzymes, antibiotics, pain
Management, Distribution and Sales. After presentation by and anti-inflammatory drugs.
Core Team, Murti was confident about its new venture but Mr.
Pintoo warned to go slow as world was witnessing global Ziva recognizes the importance of targeted customer focused
recession. marketing. The company has clear customer oriented
approach, currently serving Indian Pharma market with two
Thus till now we can conclude that with directions from the divisions: -
top management to explore the opportunities in International
Volume 5 Issue 11 (May 2013) 100
Ziva Pharmaceuticals Ltd., Pharma Division  Fluctuation in currency, especially appreciation of
rupee against the dollar.
Ziva Pharmaceuticals Ltd., Speciality Division
It has main concentration on Orthopedics, Gynecology,  Unstable pricing of raw materials, no subsidiaries
Dermatology, Allergies, Gastro, Respiratory, Nutritional present in foreign nations.
supplements, Cardiovascular, Gastro, Diabetic and Skin Care  Heavy Bargaining from clients.
& Enzymes etc.
 China, Sri Lanka and Thailand's entry in middle East
SWOT ANALYSIS market in pharmaceutical formulation trade business.
To understand organization in a better way SWOT for Ziva The potential market UAE was analysed with following facts
Pharmaceuticals was conducted with following conclusions-
GEOGRAPHY
STRENGTHS
Location: - Field info displayed for all countries in alpha order.
 High and Qualitative production capacity Middle East, bordering the Gulf of Oman and the Persian
 Skilled employees (core competency) Gulf, between Oman and Saudi Arabia
Area: - Total: 83,600 sq km , land: 83,600 sq km
 Boosting congenial but challenging work
environment that motivates their people to excel. Natural resources: - petroleum, natural gas
 Fortify and maintain a multi product portfolio with PEOPLE
emphasis on marketing network giving impetus to
Population: - 5,314,317
loft efforts to attain corporate excellence through
customer satisfaction. Age structure: -
 Persistence in excellence has been funneled into a 0-14 years: 20.5% (male 557,603/female 532,303)
continuous growth of more than twice the average 15-64 years: 78.5% (male 3,060,518/female 1,113,867)
rate of pharma industry.
65 years and over: 0.9% (male 31,942/female 18,084)
 Highly qualified and devoted staff of more than 1000
efficient professionals working together in an Note: 73.9% of the population in the 15-64 age group is non-
enabling environment to create a bold presence in the national (2012)
Indian Pharma Industry by earning coveted position Median age: - Total: 30.2 years, Male: 32.1 years, Female:
amongst the front runners of the industry. 25 years (2012)
 Keeping an eye on emerging cut-throat competition Population growth rate: - 3.055% (2012)
and global challenges, company has launched a
specialty division to fully lodge itself in the segments Net migration rate: 16.82 migrant(s)/1,000 populations
of antidiabetic, cardiovascular and gastro intestinal (2012)
drugs. Urbanization: - Urban population: 84% of total population
 WHO, ISO 9001:2000 and USFDA standard plants (2010), Rate of urbanization: 2.3% annual rate of change
(2010-15)
WEAKNESSS
Sex ratio: - At birth: 1.05 male(s)/female
 Workers turnover ratio was high
Under 15 years: 1.05 male(s)/female
 Limited presence in the international markets.
15-64 years: 2.75 male(s)/female
OPPORTUNITY
65 years and over: 1.77 male(s)/female
 Increased demand in Middle East and North
Total population: 2.19 male(s)/female (2011)Religions:
American countries, forming the largest segment and
Muslim 96% (Shia 16%), other (includes Christian, Hindu)
offering the highest growth for the company.
4%
 Participations in events being held at different Literacy: - Definition: age 15 and over who can read and write,
countries Total population: 77.9%, Male: 76.1%, Female: 81.7%
 Innovative products being produced to be promoted Languages: Arabic (official), Persian, English, Hindi, Urdu
to virgin untouched markets.
COMMUNICATION
THREAT
101 Pacific Business Review International

Telephones - main lines in use: 1.825 million (2011) • Emiratisation is a strategy that uses the country's
human resources in the most favorable way in the
Telephones - mobile cellular: 11.727 million (2011)
economic process so that transfer of skills and
Internet country code: .ae, Internet hosts: 337,804 (2012), knowledge from expatriates to UAE Nationals is
Internet users: 3.449 million (2009) happening all the time in a smooth manner.
Emiratisation affects both government agencies as
TRANSPORTATION
well as businesses.
Airports: - 42 (2012)
• If an international company wants to trade from free
Roadways: - Total: 4,080 km trade zone of UAE than company has to consult UAE
nationals for spreading goods and services.
Merchant marine ships: - Total: 61, by Type: bulk carrier 3,
cargo 13, chemical tanker 8, container 7, liquefied gas 1, • Government of Dubai's vision is to make Dubai as a
passenger/cargo 1, and petroleum tanker 24, roll on/roll off 4, hub for pharmaceuticals trading.
specialized tanker foreign-owned: 13 (Greece 3, Kuwait 10),
• International organization's membership: G-77,
registered in other countries: 253
GCC, IBRD, IDB, IFC, IFRCS, IHO, IMF,
Ports and terminals: - Al Fujayrah, Mina' Jabal 'Ali (Dubai), WHO, WIPO, WMO, WTO and more.
Khor Fakkan (Khawr Fakkan), Mubarraz Island, Mina' Rashid
• Government planning is very sound in UAE for
(Dubai), Mina' Saqr (Ra's al Khaymah)
ensuring growth and development in the country
PEST ANALYSIS of the Emirates
• Stringent regulatory approval systems- In the Gulf
The core team completed the PEST analysis of UAE with countries tough entry barriers are implemented to
following outcomes- protect the local industry. The major entry barriers in
this region are compulsory partnership with local
POLITICAL FACTORS firms, strong patent protection, high level GMP and
• UAE has a stable political system. mandatory bio-equivalence and clinical trials. The
Health Policy and Regulation Team, a sector of the
• The UAE is essentially a civil law jurisdiction heavily Abu Dhabi Health Authority is developing regulatory
influenced by French, Roman and Islamic laws. policies for all medical specialization and medical
Common Law jurisdictions have demonstrated the service sectors. The policies will include alternative
application of Common Law principles in and traditional forms of medicine. Other than the
commercial contracts. entry barriers, there are restrictive price controls and
• Federal Commercial Company Law is different from strict factory audits.
other country laws. Under the Commercial • The influence of the western world, patent
Companies Law UAE nationals must own a protection, launch of innovative products and novel
minimum of 51% of all public and private drug discovery helps maintain growth in the GCC
shareholding companies and limited liability market.
companies.
ECONOMIC FACTORS
• Government is focused on development so there are
more Free Trade Zones in UAE. • The GDP per capita for the year 2011 was estimated
to be US$ 360.2 billion
• The UAE has a unified customs duty rate of 5% on
dutiable imports. The duty is levied on the basis of the • Inflation rate 0.9 % which is acceptable as compare to
cost, insurance and freight (CIF) value of the other Middle East country
imported goods as evidenced by the manufacturer's
• The unit of currency in the UAE is the UAE dirham
or supplier's invoice.
(Dh.) or the Arab Emirates Dirham (AED) as it is
• The UAE is member of Gulf Cooperation Council termed in international markets. 1 DH = 14.62 RS
(GCC), League of Arab States, the Islamic
• The UAE has the third largest oil reserves in the
Conference Organization, United Nations, and
world. However, oil contributes only one-third of the
World trade organization. Trade with Israel is
total GDP. According to Oil & Gas Journal, the
prohibited. Business interests are a major priority for
UAE's proven oil reserves were 97.8 billion barrels as
GCC governments
of January 1, 2012. The UAE oil reserves account for
• Government focuses more on Corporate Social 8.5 % of total world reserves, most of which are
Responsibility of company because government located in Abu Dhabi.
heavily wants to protect its rich culture and heritage.
Volume 5 Issue 11 (May 2013) 102
• The UAE has pumped nearly AED 29 billion into Special Economic Zones where MNC's get a 100
manufacturing projects over the past four years and percent ownership and 100 percent tax redemption
most of the investments have been made by Abu also help in increasing the growth of UAE economy as
Dhabi. more and more of these MNC's are bringing in latest
technological innovations and new products to the
• UAE has three official stock exchanges the Dubai
country which are good quality wise and thereby
Financial Market, Abu Dhabi Securities Market,
helping in improving the lifestyles of people.
Dubai International Financial Exchange. NASDAQ
Dubai Formerly known as The Dubai International • Opportunity for company's – Companies have the
Financial Exchange (DIFX) opportunities to make earnings by doing business in
UAE and it acts as a platform for entering the GCC
• The UAE's non-oil foreign trade grew by 7 % by the
countries also of which UAE is a member. And this
end of April 2010 to Dh 56.04 billion as compared to
acts as a platform as the GCC countries economies are
Dh 52.34 billion preliminary statistics released by the
open to the companies operating in their respective
Federal Customs Authority showed.
countries.
• Government is always taking steps to ensure rapid
SOCIAL FACTORS
growth of country's economy along with wealth
maximization of U.A.E. nationals. • United Arab Emirates is an Islamic dominant country
with Islam being the dominant religion. They are
If a company sets up an office, there will be no threat
more conscious about Islamic rules and culture and
till the company is religiously following the rules and
they live their life's based on Islamic life style.
regulations as defined by the government of UAE,
like marketing restriction practices, preferential • The Emirates have a common cultural heritage but
trading practices and other rules like U.A.E. the tribal links are very strong within each Emirate.
national's participation in any multinational
• The three most populated Emirates are Abu Dhabi,
company who comes for doing trade in U.A.E.
Dubai and Sharjah approximately 85% of the total
• Growth challenges -A number of major factors could population belongs to these Emirates
possibly restrict the growth of the Middle Eastern
• The increase in demand for therapeutic applications
pharmaceutical market.
has made the market lucrative, with more Western
• The volatility of oil prices is the first challenge that companies expected to invest in the future. It is
UAE has in front of it. As most of the economies of projected that demand for treatment in the Gulf
GCC countries are governed by their largest region will rise by 300%. It will stand at $60 billion in
exporting commodity – oil. And because of this fact, 2025 from $12 billion in 2008.
the ongoing economic crisis coupled with fluctuating
• The major disease areas that will experience steep
oil prices directly has an impact on the buying power
growth will be cardiovascular and diabetes-related
of the respective governments. Diversifying
ailments. Pharmaceutical companies that invest
expenditure and allowing the entry of foreign
prudently in this market and recognize its dynamics
investment could soften the impact of the oil crisis to
will find it is possible to operate in the region without
a minimal level.
adverse developments having a reflective impact.
• As the governments know that after 40-50 years there
• The population of the Middle East now exceeds 370
will be no income from oil trade so that government is
million and is expected to reach over 520 million by
developing more and more tourist destinations to
2030. The growing population, dominated mainly by
make UAE a tourist hub to attract more and more
the expatriate community in most of the GCC
tourists. This can also help in boosting the economy
countries, has given rise to a rapidly growing market
of UAE which can otherwise face a downtrend
for healthcare especially for pharmaceutical
because of declining oil resources. And for achieving
applications and its associated industries
this objective government is developing Dubai and its
adjoining areas as tourist destination, which is world TECHNOLOGICAL FACTOR
famous for its sea, design of buildings and quality of
• The Government of Dubai launched a pioneering
life. Politically stable economy and government
initiative – Dubai Technology, Electronic Commerce
initiatives to make UAE as international trading hub
and Media Free Zone – TECOM, comprising the
for all business activities is also helping the cause.
Dubai Internet City, Dubai Ideas Oasis and Dubai
• Government's promotional activities for attracting Media City.
Multi National Company –Free Trade Zone and
• Dubai Technology and Media Free Zone is also
103 Pacific Business Review International

setting up "Knowledge Village", an ambitious scope. Many of the issues mentioned in the model including
initiative aimed at building a vibrant connected the forces and the management of those forces are relevant to
learning community. the sector as well as any other service-oriented business.
• There is a continuous Increase in development of The Pharmaceuticals sector of Dubai was analysed using this
technology because of high spending in this sector by model so that the results could be utilized for making some
the governments. Technology has provided easy strategic decisions related to market entry in its Pharmaceutical
communication channels. Government is spending formulations trade market. A discussion of each component of
more and more on setup of technology for helping all the model is as follows
new technological initiatives.
 DEGREE OF RIVALRY
RANKING OF “UNITED ARAB EMIRATES” FOR
There are 231 Pharmaceutical companies registered at Dubai
DIFFERENT ACTIVITIES OF BUSINESS
Multi Commodities Center, which are recognized and licensed
Overall business opportunities are also expected to expand to operate in UAE. This gives a clear signal that the increase in
significantly, particularly in view of the political stability and the number of Pharmaceuticals Company within the industry
the economic progress in the region. UAE is ranked as below, is fast and in any case there is now a continuous struggle for
out of world 183 economies. This ranking has been done by company to create and maintain a good market share. Though
“Doing business organization” that is handled by the World there might be an increase of the number of customers, but
Bank for Reconstruction and development. that cannot dilute the fact that there is a close competition
between the existing firms in the industry with competitors
1. United Arab Emirates (UAE) Ranks 23rd in Global
like Rosy blue, Gitnjali, Dumas working hard for the market
Competitiveness Index 2009/2010
share.
2. Steps to Starting a Business in the UAE: - It requires 8
procedures, takes 15 days, and costs 6.19 % GNI per  THREAT OF NEW ENTRANTS
capita to start a business in the UAE Pharmaceuticals market of Middle East has got a huge
3. Benchmarking regulations for Starting a Business: - potential and Dubai is the commercial hub for
UAE is ranked 44th out of 183 economies overall for pharmaceuticals trading in UAE and here the world's top
Starting a Business companies are located in the field of pharmaceuticals trade.
Dubai is gateway for trade with Middle East countries for each
4. Regulations for Protecting Investors: - UAE is ranked company. There are more than 231 pharmaceuticals trading
119th for Protecting Investors companies serving UAE & the Middle East region.
5. Regulations for Paying Taxes: - UAE is ranked 4th for Pharmaceutical companies who have specialized in particular
Paying Taxes competitiveness find it easier to survive in this market. So the
new entrants must try and come with some specialized
6. Regulations for Trading Across Borders: - UAE is product, only then they will be able to affect the trade of
ranked 5th out of 183 economies overall for Trading existing Pharmaceutical companies of UAE market. Entry into
across Borders the UAE market is easy as compared to other countries of
7. Regulations for Closing the Business: - UAE is ranked Middle East because of favourable government policies and
143rd for ease of procedures related to closing a initiatives for making Dubai a Pharmaceuticals Trading hub of
Business the world.

8. UAE is ranked 33rd for overall performance  THREAT OF SUBSTITUTES

PORTER FIVE FORCES MODEL ANALYSIS Of UAE Pharmaceuticals industry in UAE is facing very stiff
(Dubai Market) PHARMACEUTICAL MARKET competition from nutraceuticals (herbal products) trade
which are acting as the substitutes for the Pharmaceutical
There are always competitive forces in any perfect competitive formulations trade. According to statistics collected from
business environment, like that of the Pharmaceuticals sector Dubai World Statistics Department, the pharma trade is
in Dubai. expected to grow from 5.6 billion US$ to 11.6 billion US$ by
Porter's Five Forces Framework is one of the strategic models 2020, driven by a 30 percent increase in imports, but it needs
used to assess the attractiveness of the industry. This model is to take care of the competition it can face from the
defined by the five key forces which are Rivalry among the nutraceuticals division. The UAE market has been dependent
existing firms, Threat of new entrants, Threat of substitutes, on imported medicines as local players lack sufficient R&D
bargaining power of suppliers and bargaining power of capabilities. The country, with eight domestic manufacturers
customers. in 2010, has relatively limited local production capacities. The
domestic production market is ruled by generic drugs. Julphar
The model attempts to address key strategic issues in a wider
Volume 5 Issue 11 (May 2013) 104
is one of the leading drug makers in the region; other players a huge opportunity available for any new entrant wanting to
include Globalpharma, Gulf Inject, Medpharma, Neopharma make an entry in the UAE drugs market.
and PharmaCare. So despite the presence of substitutes there is

 BUYERS' BARGAINING POWER  The pharmaceutical industry in the UAE also benefits
from re-export markets as Iran,
Dubai being a trading hub has got deep knowledge about
pharmaceuticals sector and they know that there are a large Pakistan, Yemen and Somalia which are the major buyers of re-
number of sellers in market which increases their bargaining exported pharmaceuticals from the UAE that increases the
power as a buyer in the trade of pharmaceuticals. If bargaining power of buyers.
Pharmaceuticals Company produced high quality
ENTRY STRATEGY
pharmaceutical product, then especially for those drugs, buyer
may be ready to pay the price that company charges, but in Entry in United Arab Emirates market is somewhat easy as
general in the pharmaceutical sector there are high influences compared to other GCC countries. According to core team,
of bargaining power from buyer. company can enter by setting up business office at Dubai. It is
the Commerce City of United Arab Emirates. There is Dubai
 SUPPLIERS' BARGAINING POWER Multi Commodities Center where companies need to get
Pharmaceutical market has high growth potential due to stable registered, then setup office in center.
and favorable regulatory and political environment in the Information is given below about city's and government's
UAE. Increasing public and private wealth fuelled by the oil initiative for promoting pharmaceuticals trade and the
boom and strong healthcare infrastructure does make the potential of Dubai as a potential market for pharmaceuticals
market favorable for suppliers but their bargaining powers is products.
not much because of the presence of other already established
suppliers in the market. MARKETING STRATEGIES
 Establishment of Free Zones and a favorable investment Ziva now on an expansion Spree has an opportunity to enter
climate to explore the emerging regional opportunities Middle East market by setting up company business office at
Dubai which is an entry strategy that can be adopted for doing
 Drug consumption in the MENA region accounts for business in Middle East. First of all, the company has to focus
about 1.5% of the global total or around $ 9bn. on capturing the Dubai pharmaceutical market by focusing on
 The UAE is 2nd in the region in terms of capital invested pharmaceuticals traders who don't have their own
in the Pharma sector manufacturing facility by participating in the event named
DUPHAT, distributing catalogues, participating in coffee
 Reliant on imports with more than 72 countries exporting clubs and by purchasing a stall in the conference, participating
Pharma products to UAE in trade fairs and updating website with communication in
 Highest-priced market in the region both Arabic and English language. There is no restriction for
105 Pacific Business Review International

promotional activity in UAE. For distribution channel, the to the brand name before its formal entry in the
Company could use an agent who is a UAE national to cover market.
market of UAE. After capturing the market by selling
8. Appoint experienced commercial agent who is U.A.E
pharmaceutical formulations only, the company can come up
national for taking care of the initial operations of the
with companies own subsidiaries.
company in the country.
Company can expand market share by expanding in ethical
pharmaceuticals business and using the face to face trade  MARKETING MIX
meeting with Clients and thereby satisfying their demand. In Product
deciding about the strategy to be adopted for pharmaceuticals
retailing, the company can meet the growth criteria by • Pharmaceutical raw materials
extending its network and strengthening the alliances with • Pharmaceutical formulations
media and Internet vendors as well as increasing its effort to
deliver through the latest technology in e-commerce. Price

Marketing objectives • In this segment price is not predetermined, and prices

are determined based on pharmaceutical industry
To develop an additional course of action, recommendations, competitiveness and following the national
and change methods to Ziva 's current strategy in order to regulator's recommendations and policies.
expand the market share in ethical business and
pharmaceuticals trade business. Place/Distribution

Financial objectives • U.A.E and Middle East.

• Getting the expected return on investment • Pharmaceutical traders who don't have their own
manufacturing facility.
• Profit maximization with wealth maximization
Promotion
Positioning Statement
• Website containing complete information of the
The firm can position itself as a raw material supplier of hard company
gelatin capsules and then launch the products in strategic
alliance with the local distributor in ethical prescription. • Participation in trade fair of Dubai
• Catalogs distribution in English , Arabic language
 KEYS TO SUCCESS
• Participation in health camps and conferences held
Some of the key factors that will help Ziva Pharmaceuticals
across UAE.
Ltd., Pharma Division to expand its operations at Dubai
include: People
1. Setting up office at Dubai to meet the needs. • People of UAE are educated and have a high level of
income and a luxurious life style and people are
2. Extending its network of pharmaceuticals trade
investing heavily into healthcare for leading healthy
across the U.A.E.
lives.
3. Effective communication with government which
will improve relation and trade  STRATEGY AND IMPLEMENTATION SUMMARY

4. Participation in DUPHAT- The Dubai International The growth strategy of Ziva will require it to initially setup a
Pharmaceuticals and Technologies Conference and new office at Dubai. The foundation of the company will also
Exhibition with different promotional activity which have to be slightly adjusted in response to today's retail
will increase client base environment. There will be two phases for entering the UAE
market and these include the following: - First phase is to setup
5. Repositioning the look of the current website by office at Dubai. Secondly, marketing people must revamp the
upgrading graphic elements and state-of-the-art Ziva pharmaceutical's brand to build and strengthen
navigation with Arabic language for attracting customers' relation and attachment with company in Dubai
customers. and this can be done using the strong promotional strategy like
6. Setting up alliances with supporting media and the participating in trade shows and other local trade fairs so that
Internet to promote the idea of selling OTC drugs customers can easily recall the brand name when it is launched
online on mediums in Arabic language. in UAE.

7. Dubai is famous for its trade fair, and the company

should participate in that fair for exposing the people
Volume 5 Issue 11 (May 2013) 106

Strategy Pyramid healthy 10-15% annually.

Entry in the new market will be the hardest decision for the • There are more than 450 pharmaceutical
organization, but after they win the hearts of the consumer manufacturers in the Middle East - With the
market there, it will be easy to sustain in the UAE market as it exception of Egypt, all Middle Eastern countries are
has got a lot of market potential in the healthcare sector. high importers of branded drugs. Egypt is over 90%
self-sufficient in its medicine needs
It will have to recruit a marketing executive who has the
knowledge of industry as well as knowledge of both Arabic & • Saudi Arabia, as the richest regional market, has
English language. Later, Ziva as a company must continue to embarked on an ambitious hospital building project -
invest in increasing the competency of its people through Major growth driver's are- greater access to generics
training them in various pharmaceutical divisions to compete and innovative new medicines as primary care
with the increasing competition. The corporate culture that improves and more people are covered by health
exists in the organization will help Ziva in becoming a insurance.
company that is trusted in the foreign market because it is
• Countries are increasingly adopting liberal economic
dedicated to providing good governance and because of this it
policies in the healthcare sector
will yield greater performance.
• Local manufacturing capabilities are constrained to
The brand re-development for Ziva will need to put an
generics.
e m p h a s i s o n i t s n e w m a rk e t i n g c a m p a i g n " T h e
Pharmaceutical for better health" The emotional marketing • A high acceptance of Western medicines is present
campaign with innovative and scientific approach of company
This report was then presented to top management by core
can and will appeal to the savvy generation of today.
team with one hour audio video presentation. Several
Company must also base its sales strategy on the scientific questions were raised by different heads and team could give
approach. The tech savvy sales-people must use the latest CRM satisfactory answers for them. At the end it was accepted by
tools to form long term relationships with their customers CEO for immediate actions.
which will help them in sustaining the profitable operations in
Questions for Discussion
the new market for longer durations of time.
Q 1 - What are the various tools that have been used to
The core team concluded with following five key findings-
understand the potential of the UAE(Dubai) market? What
• Overall the Middle East's pharmaceutical market is conclusions can one draw from the findings of those studies on
valued at more than $12bn and is expected to grow at the overall potential and attractiveness of market so developed?
107 Pacific Business Review International

Q 2 – If Ziva Pharmaceuticals decides to enter the UAE market

in this situation, then on the basis of facts mentioned in the
case whether it will be a correct decision or not?
Q 3 – What are the marketing strategies that the Firm ZIVA
pharmaceuticals can adopt in this case for the entry into the
Middle East (UAE or Dubai) market on the basis of facts given
in the case?
References:
WEBLINKS
http://smetimes.tradeindia.com/smetimes/news/top-
stories/2010/Oct/23/india-s-pharma-industr y-to-quadruple-
by-2020-report62266.html
http://www.bii.in/page/academic_program/vision_2020.asp
http://www.pharmaceutical-dr ug-
manufacturers.com/pharmaceutical-industry/
Deconstructing the sales force stalemate: successful
Management, pharmaceutical Executive supplement 2004
http://www.Zivachemicals.com/beginning.htm
BOOKS AND JOURNALS
 Drugs and Pharmaceuticals: International Pharmaceutical
Industry-A Snapshot,Jan 2004, ICRA
 Pharmaceuticals: The Indian Pharmaceutical Industry, Feb
2005, ICRA
 “International Marketing Strategies in India” by Prathap
and Micheal, Vikalpa (IIMA),Oct-Dec 2005
 Agarwal, S., Desai, S., Holcomb, M. and Oberoi, A. 2001,
'Unlocking the value of Big Pharma',The McKinsey
Quarterly, No. 2.pp. 65-73.
 Deconstructing the sales force stalemate: successful
Management, pharmaceutical Executive supplement
2004
( Most of the data are secondary data, collected from different
sources/ organizations. This case is of academic nature and has
only intention to discuss various theoretical concepts and
approaches adopted by organizations ).