Target Segmentation of BiofarmBased on their status function, the clients from which the products of Biofarm are sold to are divided as following : Distribution companies, finals consumers and a aproximately 5 % of the remaining sales are forwaded to hospitals.
Bellow we will enumerate the main and most important traders Biofarm has contracts with.- > Mediplus Bucharest- > Fildas Bucharest- > ChPM LTD Bucharest- > Geranium LTD Timis- -> Montero Ltd Bucharest- > DITA Import-Export Ltd Bucharest- > Pharma Distribution Group – Cluj Napoca- > ADM Bucharest Of course, the majority of these traders with whom Biofarm has contracts with have made, in time, their own franchises and stores of pharmacies, but we have to keep in mind that these ones only have a margin of 25 % of the total number of working pharmacies with wich Biofarm has working contract to sell their products too. It will also have to be mentioned here that in conformity with the legal provisions in the sector of pharmaceutical medicine, the manufacturers of medicine cannot sell their own portofolio of products directly to pharmacies, because there are in set harsh rules and conditions for the binding of purchasing-saling contracts. The amount contracted determines the percentage of discount granted to distributors as well as the payment term of the order, the average period of a commercial credit here granted being 30, 45 and respectively 60 days. The company’s production is intended for 80% of pharmacies, the rest of them representing the constantly required supplies of hospitals.
The Hospitals only own up to 20 % from the total volume of sales, based on the lack of attractiveness of this sector and also because of the threat of financial blockage materialized in the non-payment of the debts to the suppliers of medicines. For the products with which Biofarm supplies these hospitals as the sole supplier, they charge the value of them on the spot.The products of Biofarm cover a vastly variety of different therapeutical classes of medicine which are being made, based on their unique function, for a diverse arrangement of customers, mixed both in terms of the age category and the afflictions they suffer. Biofarm has positioned their portfolio of products on the pharmaceutical medicine market as one of a lower price compared to the competition, thus through the customers of Biofarm we can find segments of population with medium and low incomes.
The pharmaceutical category of nutritional supplements is addressed to those with over-average incomes because they can allocate the extra amount of money in the direction of purchasing products that will ensure a healthy structure of the nutrients in the body. Service of OffersThe better conduct of the market is based on the successful interrelation of the activities of Biofarm which are characterized by a very high degree of disparity. Therefore, the choice of service providers must be subordinated to the criteria of efficiency in relation of a cost-effectiveness.The main list of collaborators that Biofarm has, who are split based on the nature of their function is as it follows : – > Go-Trans Ltd – who is a customs commissioner- > The Institute for Computing – who is the provider for enterprise resource management system- > The financial services for the operations of import and export are offered by ABN AMRO Bank and the Romanian Commercial Bank at national level.For the direction of organizing and conducting promotional operations, BIOFARM uses the following specialized agencies:è Direct Distribution – Adversiting Agencyè Zenith Media – media planificationè Quick Monitoring Media – media monitoringè Zadvertising andProfile Grafics – packaging designè Seriprint Promotions – promotional objects, banners, t-shirts, pens, protocol objects etc.The main suppliers of work force because of the nature of Biofarm’s activity are the following unviersities : è University of Bucharest – University of Chemistry and Biologyè University Polytechnic of Bucharestè Carol Davila University of Medicine and PharmacyWe also keep in mind The National Agency for Employment who intervenes as a major work-place handler.
Supply Chain of BiofarmA situation of Biofarm’s main suppliers of equipment and appliances in puts Croatian company Pharmalab, which holds 34.4% of the total equipment purchased, at the forefront. Pharmalab is a strategic supplier for all BIOFARM production lines offering a heterogeneous range of industrial products: vats and reservoirs of different storage capacities, mixers, water purification systems and steam generators, sugar preparation and transfer systems, pumps and dispensing systems for drugs, etc. BIOFARM imports from India’s Kevin Engineering (the second largest supplier with a share of approximately 17%) granulators, mixers and mobile cabinets.Other suppliers with whom the company cooperates and will be treated in detail at the micro medium section:-IMA Precision Gears LTD, India – sensing sensors, rotating tables;- DEV Industrial Enterprises, India – different capacity vessels, rotating systems, mixing silos, granulators;- PALL, New York – filtration systems;-Carrier, Connecticut – coolers;- GIC Engineering INC, Florida – laboratory machines for the production of gelatin capsules;- Tooltronics, Texas – equipment for the gelatin capsule line;Watson Marlow LTD, England – Peristaltic pumpsAdvertising Campaigns Since the economic crisis from 2008 beginning one of the main strategies for Biofarm was to accentuate strongly on maintaining a strong market share starting from that harsh economic downfall, through a series of intensive actions of marketing and through the solid consolidation of a promotional and sales team who could sell Biofarm’s products.
Since the economic crisis, gratitude to the amazing promotional advertising campaigns, Biofarm has maintained a steady growth. Even now these commercial, media and marketing campaigns keep attracting new clients every day and maintain Biofarm’s strong position on the market.In order for Biofarm to keep raising the degree of recognition of their portfolio in the eyes of its consumers, Biofarm keeps promoting their products in the biggest and most important pharmaceutical chain stores and also in independent ones and cooperating with the 10 strongest distribution companies on the pharmaceutical Romanian market. They maintain a steady flow of creating constantly new marketing, commercial and media campaigns with the sole purpose of improving the brand recognition of Biofarm’s products.