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Originating from the urgent issues above, Traphaco Joint Stock Company has invested and researched a range of liver, detoxification tonic Boganic product by combining 3 Vietnam's herbs C

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"BUILDING MARKETING STRATEGIES FOR BOGANIC PRODUCT"

1 Abstract

According to the report of the World Health Organization (WHO), the worldnow has about 350-500 million chronic hepatitis patients that is one of the maincauses of liver cancer Low living conditions, environmental pollution, unsafe andhygiene food, habits of drinking more alcohol and drug use are the causes that makethe rate of hepatitis in Vietnam very high

Medicine to treat and protect hepatocellular from medicinal chemical origin isstill lacking at present, along with a shortage of treatment drug is usually very highcost, and medicinal chemical drugs have unwanted effects as well Herbalpreparations have many advantages in terms of safety, cost of treatment andenvironmentally friendly compared with pharmaceutical preparations Thus, the trend

of using the products of natural origin is the inevitable trend worldwide

Originating from the urgent issues above, Traphaco Joint Stock Company has

invested and researched a range of liver, detoxification tonic Boganic product by

combining 3 Vietnam's herbs Cynara scolymus, Glinus oppositifolius and Pharbitis

nil "Research on producing Boganic liver - Detoxification tonic fromVietnam Herbals" work has been made and the results of this work is the basis for forming

ideas and developing BOGANIC product chain Within the scope of our groupexercise, we make Marketing plans for BOGANIC product under the form of creameaten directly or mixed in water to drink

1.1 General description of product

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Boganic is a unique combination between three natural medicine to increase the

potency of the drug with a target of treating some liver, bile diseases, according tomechanisms: increase exudation of bile, liver rehabilitation, anti-inflammation,detoxification, anti-allergic, diuretic

PRESENTATION: 20 gram box

INGREDIENTS:

Each jar contains:

Extractum Cynara scolymus: 100 mg,

Extractum Glinus oppositifolius: 75 mg,

Extractum Pharbitis nil: 7.5 mg, Excipients

* Excipient of each sugar covered softgel:

Each softgel contains:

Extractum Cynara scolymus: 200 mg,

Extractum Cynara scolymus: 150 mg,

Extractum Pharbitis nil: 16 mg

Excipients

ACTIONS:

Actiso (Cynara scolymus): contains main active substances such as Cynarin,

polyphenols, inulin, mineral salts Polyphenols are effective for reducing cholesterol

in blood and protecting liver Inulin is needed for diabetc Actiso is used for treatingliver function deficiency and jaundice, increase of blood cholesterol level, treatingatherosclerosis

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Polygonum avicula: contains essential oils, avicularin, quercitrin, Emodin It

has diuretic, anti-inflammation, anti-diarrhea, and intestinal parasites anthelminticeffects It is used for treating cystitis, urinary retention, strangury, bacillary dysentery,jaundice, itch, pimple, hemorrhoids and leucorrhoea

Ipomoea hederacea: contain Glucosid, Pharbitin, laxative effect, diuretic,

antiseptic

Combination of 3 drugs increase the force and effect:

Laxative - Diuretic – Antiseptic effects - detoxification INDICATIONS:

- Decrease liver fuction, especially due to overuse of alcohol drinks

- Prevention and support in treatment of hepatitis induced by drugs orchemical

- Liver insufficiency, hepatitis with symptoms of fatigue, jaundice, indigestion,urine retention, constipation…

- Allergy, pimples, itch, unricaria due to hepatopathy

- Atherosclerosis, hyperlipaemia

1.2 GENERAL INFORMATION:

DEVELOPMENT HISTORY

Before the equitized period (from 1972 to 1999):

Organizing drug production of the Railway Health Service, established on

November, 28th, 1972 With 15 staff key tasks dispensing prescription drugs Serumproduction, fluids, distilled water for hospital serving the railway industry during theresistance war against America health along with the Railway Health Service,headquarters at 75 Yen Ninh - Hanoi

Some years later due to the requirements of the situation, moving production teamswork only active circulating drug delivery 8/31/1977 held to be re-produced withfunctional recovery tasks performed drug production and drug supply equipment forthe entire railway industry, now has 37 employees

Railway drugs factory was established on May, 28th, 1981 To upgrade fromdrug production Railways, while expanding the scale of production

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Pharmaceutical enterprises railway, established on June, 01th, 1993 (with

transaction name as RAPHACO) legal status, seal, separate accounts, the production

sector drug supply, now there are 80 employees, legal capital of VND 150 million,rudimentary equipment, outdated, cramped space (the 340 m2 factory), more difficultthan favorable, but with courage, spirit of determination mind to overcome difficulties

of building a step forward now

Pharmaceutical and medical material and equipments Company - Ministry

of Communications and Transport was established on May, 16th, 1994 as a trade

name TRAPHACO with functions including the production and sale of

pharmaceuticals, supplies and medical equipment Company stores hire business in18A Le Duan, No 9 Lang Ha, No.31 Lang Ha, No.108 Thanh Cong for generalwarehouse transfer The circulation directly involved in drug distribution, supplies,medical equipment helped capture the business needs of the market In our desire tomeet quality and production scale, the company built 6,000 m2 factory premisesrented by at Bai Phuc Xa, Xuan La 1, Xuan La 2 and Phu Thuong

The company has completed pharmaceutical production factory construction atPhu Thuông - Tay Ho - Ha Noi in1998 on rent 1.500 m2 area) and DrugAdministration recognized standards GMP - ASEAN (ASEAN Good ManufacturingPractice) This is the first GMP production line - ASEAN in the North

Equitized into Pharmaceutical and medical material and equipments Joint Stock Company - Ministry of Communications and Transport on September, 27th,

1999 with 45% State capital, according to the policy renewal, reform of state

enterprises to improve business efficiency This is the most important point, theleadership and all staff have been actively preparing all legal requirements for theGeneral Meeting of Shareholders held on founders November, 15th, 1999

The equitized period implementation (from 2000 to now):

January, 2000, Pharmaceutical and medical material and equipments Joint Stock Company - Ministry of Communications and Transport operating under formal model JSC to July, 05th, 2001 Pharmaceutical and medical material andequipments Joint Stock Company - Ministry of Communications and Transport

renamed TRAPHACO Joint Stock Company: carry out import and export trading

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activities: Pharmaceutical products; Cosmetics; Pharmaceutical materials; medical materials and equipments; Functional foods, wine, beer, soft drinks:

In 2002, Company was established the first branch in Ho Chi Minh City with office area and GSP store In 2004, Company inaugurated and put into use GMP-

WHO production Factory is located on area of 10,000m2 in Hoang Liet, Hoang Mai

district, Hanoi In 2006, established the second branch in Da Nang city and in 2007, company had inaugurated the factory traditional medicine at Van Lam - Hung Yen standard GMP-WHO and established high Technology TRAPHACO JSC June, 26 th ,

2009, launch TRAPHACOSAPA Limited Liability Company at Lao Cai,

TRAPHACO officially 100% owns capital, transition from a joint venture betweenTRAPHACO Company and Lao Cai pharmaceutical, inaugurated the third branch at

Nam Dinh city In 2010, established 4 branches in: Nghe An, Thanh Hoa, Hai

Phong, Vinh Long

The modern management tools are also been applied in company: ISO

9001-2000 by BVQI Organization (2006) March, 07th, 2007, the company is certified ISO

14001-2004 QUACERT October, 2007 TRAPHACO officially certified to practice good 5S (Tools of the Japanese 5S management has been effectively applied in the

Company)

November, 26th, 2008, TRA stocks were officially listed on HOSE

Overcoming the difficulties of the early stages the equitization, the company has endeavored to achieve success and be recognized: The honor was

awarded the "Third Class Labor Medal" of the President (2002) Appellation

“Enterprise for the advancement of women” – KOVALEVSKAIA awards for

collective female scientists of TRAPHACO (2005)

November, 27 th , 2007, TRAPHACO JSC its 35th anniversary and is proud to

receive the Second Class Labor Medal by the President of Socialist Republic ofVietnam awarded the Third Company & Group Company Over 35 years ofconstruction and development, the TRAPHACO was really strong and have a lot tocontribute to the protection and health care as well as the development of thepharmaceutical industry Vietnam

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In 2009, 10 years the equitization enterprises operating efficiency TRAPHACO

is recognized as the most famous brand pharmaceutical industry Vietnam, VietnamGold Star TOP 100

In 2010, TRAPHACO is the only unit of Vietnam Prize by the Organization

WIPO World Intellectual Property awarded Awardees III Social Responsibility in thefield of Environment (CSR), Vietnam Gold Star TOP 100 And especially onDecember, 10th, 2010 TRAPHACO was honored to receive Ceremony “Labour Hero” Title achievement in the period development from 2000 to 2009

+ TRAPHACO honored to receive the award TOP 100 Vietnam Golden Star

"award particularly" TOP 10 typical enterprise social responsibility”

+ First time attendees TRAPHACO "poll Annual Report 2010" and has wonthe award "Best Annual Report" Along with this award, TRAPHACO ranked AAA

"Annual Report Vietnam credit rating" for businesses operating efficiency,demonstrating transparency, strong financial strength, long-term growth prospects andcontrol the business capital and lowest risk

+ June, 2011 “ Development of a grinding tool to identify medicinal plants andHoai Son herbs” scheme located in GreenPlan project (research and developmentproject sustainable medicinal TRAPHACO) has received funding from the WorldBank through the program "Vietnam Innovation Day 2011”

+April, 2011 toipc “ TRAPHACO honorably receives the title - “The FamousBrand in Vietnam”

In 2012

+ October, 29th, 2012, TRAPHACO has become largest shareholder of

Pharmaceutical - Medical Supplies Joint Stock Company in Quang Tri with the

percentage of ownership is 42,91% charter capital.

+ May, 11th, 2012, TRAPHACO has officially become the largest shareholder

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of Dak Lak Pharmacy - Medical Supplies JSC ownership rate is 24.5% on October,

10th, 2012 TRAPHACO has offered to buy the shares of JSC Pharmacy - MedicalSupplies Dak Lak increase its stake from 24.5% to 51%

+ Established 2 branches in: Quang Ninh, Gia Lai bringing the total number

of branches in over 14 companies in this branch (2branch grade 1, 12 branches 2level)

+ June, 2012, TRAPHACO honored to receive “ International Quality Award”

at Federal Republic of Germany May, 2012, TRAPHACO was received TOP 10typical business community June, 19th, 2012, TRAPHACO Certification has beenawarded "TOP 50 of the most effective business in Vietnam " On October, 04th,

2012, the decision TRAPHACO received First Labour Medal by President

UK working for the development and management of economic, social and humanitarian

Attending the awards ceremony, 41 enterprises from 33 countries around theworld businesses and organizations are awarded based on an assessment ofachievements in commercial activities and the successful model in developingeconomies Most companies award activity in the industry that brings high value tosociety as infrastructure construction, petrochemicals, agriculture, banking, health andeducation Database to assess the business is from the official statistics in the country,the world ranking business or professional publications At the ceremony he mundaneCode - CEO TRAPHACO was also honored as "excellent manager" for theachievement of business leaders

May be said that Traphaco is quite successful brand in Vietnam

Mentioning the success Factors of TRAPHACO brand, the reason is thatTRAPHACO have already anticipated the change in the perception of modern man for

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medicinal products and health conditions in the coming decades ghost researchers call

it consumer tendencies in society Consumers not only in Vietnam but also the worldbecomes not want to depend too much on modern lifestyles , flooded forest betweenwestern medicine products ( derived pharmaceutical chemicals ) will be used to fasttreatment but there are many side effects , long-term effects on health Few years ago,the use of bleach widespread panics created for consumers not only by the price issue,but also potential unwanted side effects

Not only in Vietnam but also in the world but given River appear to return tonature When life is satisfied increasingly materialistic , people will tend to be desiredenhanced quality of life and respect for the environment In consumer awarenessabout Health and Medicine also have similar changes, but as a return of folk remediesand want to have a balance and harmony of yin and yang to improve the quality ofhealth Social increasing trend highlighting cures more fond of her husband , refinedtransmission lines, transmission enrichment , conditioning , balance underlyingillnesses repulse Meanwhile, the contract is safer and fewer side-effects And it isalso an important prerequisite for TRAPHACO can find a “great space" to "anchor"your brand on the mind of the consumer

Success Factors 2nd of TRAPHACO know include the nation - an elementbelonging to "countries of origin" to create a brand identity TRAPHACO This factor

is based on the source lines are Vietnam's traditional medicine should be based onstandardized values and lessons from traditional medicine has a century ago , therehave been ma huge impact to medicine modern Evidence that Vietnam has a system

of research facilities and medical treatment to traditional medicine vast relief medicinemore than 45 nations, more than 242 general hospitals have traditional medicinedepartments , 4,000 valid standards organization Oriental medicine is not a strangelanguage which has become a cure familiar to many people Therefore, TRAPHACObring repatriation of an image that represents "Vietnamese identity", close does not getany stranger to the writer and the finish is very "mystery" Western consumers

3rd point affects the shaping identity that characterizes of TRAPHACO product.Palm trees and knowledge of natural, traditional experience of generations drawingfrom thousands of years has been a source remedies derived lines are provided

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This is an important characteristic of the TRAPHACO product - factors thatmake up an image friendly, safe and closer to humans than are products derived drugssoluble And images trees, flowers and leaves attached a theme, a way to call and call,

an "icon" is TRAPHACO typical image used to advertise your products

TRAPHACO products that use the words compelling ad to new client packageas: “Solution from nature - Efficacy and Safety” (Tradin used to treat colitis),

“Spiritual tonic, herbal” (Positive blood work), “Natural origin” (Siro Slaska coughtreatment), “Solutions for Fatty Liver” (Carmanus)…

Recently, TRAPHACO’s picture also linked to the development of clean fuelregions in Vietnam This approach not only contributes to the alleviation of povertybut also the ambition of building a national brand for Vietnamese medicinal Nam.Viecfailure and directly as a pioneer for the development of medicinal empty area notclean is only intended to add value to products from growing, which is a uniqueinitiative of TRAPHACO to create new value for the brand identity in all perspectives

"product", "organization" provides as " symbolism" The angle of the product, this is acommitment to improving the quality from "A to Z" But if looked at from one anglepicture of an organization 's work TRAPHACO escaping benefits of a business merely

to take care of shared responsibility , resource exploitation countries contribute todeveloping an industry export-oriented numb bring jobs and income for millions ofpoor farmers With respect to the icon, attaching trademarks TRAPHACO imagematerial areas clean is an approach to bring your collection to enjoy for manyconsumers TRAPHACO should not only advertising is a drug manufacturer , ghost orbecome a symbol of power and caring for human health protection in the direction yousafer , to shape an word " Mind " and " Prestige " - " soul " of the TRAPHACO brand.The fourth important factor creating TRAPHACO brand, and if no elements onsupply factors contest but did not do justice to its role, is the ability to rise through thestages of the value chain from cultivation, processing, marketing and consumption onthe market according to a management company and produced entirely colored

"western" Thanks to this process, TRAPHACO has created two specificadvantagement for business which is:

Role leads the market through new products

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TRAPHACO always has been a pioneer in research and cover-up of high-qualityproducts Therefore the features of its products effective TRAPHACO - Quality -Creativity - innovation pioneering products always have a place in mind to better theuser and the market With superior quality, our products TRAPHACO often worthmore products of the same category of other manufacturer and supply Therefore, tradeTRAPHACO Product Key rivals followed imitate, even piracy, Counterfeiting.

Create differentiated value from technology

For modern image, a community is very important innovations in traditional medicalpractices in all forms and quality The basic feature of this process is to create a "corecompetence" research and product development (R & D) for enterprises, combinedwith the improvement, standardization of stages of the production process in orderindustrialization and modernization of this product, which can be summed up by thephrase “modern technology”

Technological factors were developed in the following three points to create uniquevalue for the product in TRAPHACO:

- Apply technology, data processing "clean - safe": instead of the traditional style is

collecting folk, TRAPHACO towards the development of areas of cannabisproduction on one angle to replace imported products, quality control, lower costs andform data gaps are so endangered

- Research and product development: TRAPHACO investment in research and

development stages (R & D) of about 5% of annual revenue New products on themarket branded products TRAPHACO up to a maximum of over 200 generic for thecompany each year

- Apply processing, modern packaging technology: Besides the traditional format,

TRAPHACO creative, Additional Dosage Forms extra two dollars "upgrading" and

“innovative" But typical products in the format "cover upgrade" was sightedmembers, Instant Tea knotweed, Instant Tea ventricle, positive reinforcement Festival,cadef who are the product ranks senior TRAPHACO But TRAPHACO new dosageforms were removed from the research process are forms of hard capsule , soft capsule, pellet , or tablet , film coated tablet dosage forms this has just helped to stabilizethe product quality, of ensuring the effectiveness of treatment , consistent with the

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requirements of the tastes of modern society Cover a community the key to its valueadded for oriental medicines and overcome the disadvantages of traditional orientalmedicines.

Through this fourth element, TRAPHACO has become a brand differentiator increating an animation - Western medicine combined attractive and innovative: take theimages brought modern colors to convey the soluble content was transformed Solvedinformation General intangible, TRAPHACO imagery is a combination of twomodern elements and communication has been wrapped up in this business sloganyour "New Technology about traditional character”

1.3 The target market identification

Drug delivery systems are planned and managed on the basis of compliancewith standards, technical regulations and supply of drugs towards scientific andreasonable, to ensure access for people with drug favorably, ease in all situations

Regarding distribution, wholesale drugs: companies have policies aimed ataccelerating the process of opening branches locally eliminate intermediaries toshorten the path of drugs, lowering production costs Deploying the application ofadvanced drug delivery technologies, based on the implementation of regulations ongood practice medicine distribution (GDP) and Good Storage Practice (GSP)

Regarding supply, retail drugs: the specialized regulations aim to allocatesufficient retail facilities, the dispensing point, especially in disadvantaged areas,mountainous and remote to any people always have to use drugs when they are ill.The company is also urgently reorganize, construction and retail outlets all across thecountry, creating the conditions for the formation of large chain pharmacies arecompetitive in the market, in order to achieve the purpose of all providing orientation,drug use is not reasonable to rely on distributors multinational pharmaceutical, notbeing dependent on foreign investment

Vietnam has become a full member of the Association of Southeast AsianNations ASEAN and the World Trade Organization WTO, the harmony andintegration with the world is the inevitable trend and extent of becoming more deeplywider Cooperation and integration in the field of international pharmaceutical, first ofall necessary to determine the role and position of Vietnam's pharmaceutical industry

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in the pharmaceutical value chain worldwide Striving for pharmaceutical industryVietnam become an integral part of the pharmaceutical industry systems and worldregions In step with this trend in the right direction in the modernization oftraditional medicine , ethnic elites promoted on the basis of modern machinery andtechniques successful export products abroad has made Traphaco breakthrough Toovercome these barriers , as well as strict increasing demands of the market, thesystem applies Traphaco GMP- WHO and ASEAN GSP/GLP- and apply the qualitymanagement system ISO 9001:2000, environmental management system ISO14001:2004 and application management tools of 5S , Kaizen - the Japanese .Therefore, not only prestige in the domestic market , has recently Traphaco exported

to some countries in the region such as Myanmar , Laos , Cambodia and Europeancountries such as Belgium , Ukraine Currently, the product has been registeredTraphaco protection in over 20 countries around the world including Boganic startedappearing in the market Ucaraina - the city of Kiev The company also conducted areview of the legal requirements to open a branch in the city of Kiev , enabling people

to easily access product and company can expand its market to other cities and further

to the neighboring countries of Ukraine

Development targets of Traphaco to 2020 will establish economic groupbusiness products and health care services, research and development of high-techproducts of natural origin With Traphaco, to grow, to expand production, fromleadership to staff to respect the views: Taking science and technology-centered,taking to market orientation, taking as growth dynamics, get quality commitment tocustomer

1.4 Competitive advantage

Boganic is one of the products of TRAPHACO application theses State

“Building pharmaceutical manufacturing processes cleaner and cleaner process forthe preparation of a number of high quality products” With good treatment efficiency,treatment costs reasonable, produced from domestic raw material extraction, productBoganic has achieved many awards in the past years as scientific solutions andinnovative technologies Vietnam award essence of Vietnam, Vietnam Gold Star,

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VIFOTEC prize for work "manufacturing Research Boganic liver tonic herbaldetoxification Vietnam”

Traphaco confirmed its position and its brand in the pharmaceutical industry inVietnam Continuous 14 consecutive years the title "Vietnam High Quality Goods" bythe consumer vote (1998-2011), awarded "Vietnam Golden Star" (2003, 2010), isrecognized as the "Brand The most famous pharmaceutical industry Vietnam "(2009)

In 2007, President Traphaco was awarded "Second Class Labor Medal" and in 2011was awarded to innovative science VIFOTEC for Boganic

The proactive input source is considered very important problems withTraphaco, avoiding the effects of the world economic crisis, contributing to deficitreduction, generate revenue for businesses of Vietnam's satellite Traphaco Somedrugs are mined in Vietnam as 100% in the steering nail care products blood brainactivity, cover-up products Ampelop, artichoke in Boganic Around 30 thousand tonsper year pharmaceutical clean was used in Traphaco

According to a survey by market research firm IMS to midyear BoganicTraphaco ranked 8th in the top 20 sales best selling product on the pharmaceuticalmarket in Vietnam Boganic group leader in protecting liver derived pharmaceuticals,accounting for 29.7% market share by revenue This result demonstrates theeffectiveness of the strategy of "Green Health" which is pursuing Traphaco

Traphaco strategy ' Green Health '

This strategy is built on the foundation of natural medicinal herbs, to ensuresustainable development, environmentally friendly, closely linked with thedevelopment of the economy and bring health to the community

According to survey of Traphaco JSC, Vietnam has advantages in terms ofbiodiversity with over 4,000 species of plants and mushrooms have medicinal uses,many endemic species expected in new drug development Thus the navigation, focusresearch and production of drugs of natural origin are being viewed as a majorbreakthrough in the pharmaceutical industry

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