Executive Summary In early 1990, Warner-Lambert Ireland planned to launch an innovative new product named Niconil, which was made for people who would like to quit smoking. Niconil would be the first patch-type product in the smoking cessation market in Ireland. While existing smoking cessation products of the other companies had not been successful due to the concerns about negative side effects, Warner-Lambert executives had an optimistic view that Niconil would be recognized as a safe and effective product by prospective consumers. In fact, results obtained through preliminary market research seemed to support their optimistic views. Nevertheless, there were critical problems that should be solved before launching the product as …show more content…
Market Evaluation Overall, total population of Ireland was about 3.5 million in 1989, and 0.75 million people (30% of 2.5 million adults) were smokers. That is, the total potential market for smoking cessation products was 0.75 million. WLI executives estimated that those who tried to stop smoking each year were 75,000, and assumed that Niconil could be sold to half of that number. Therefore, target market size would be 37,500 people, and then, WLI expected that 100% of the estimated consumers would purchase Niconil at first time. After that, 60% of the target customers would buy another two-week supply and finally, 25% of that number would purchase a third-week supply. According to results of test trials, about 75% of smokers finished the Niconil program within 6 weeks. If they did not take remaining 25% of smokers into account, the total expected unit sales could be calculated as follows: 1. Total target consumers : 37,500 2. 60% of No. 1 (those who would purchase a second two-week supply) : 22,500 3. 20% of No. 2 (those who would purchase a third two-week supply) : 4,500 Total expected unit sales : 37,500 + 22,500 + 4,500 = 64,500 This number might be regarded as a minimum expected unit sales, because remaining 25% of smokers who did not complete the program in test trials was not included in this calculation. If taking those people into account, the expected unit sales would increase. Pricing Strategy
Scenario: Richman Investments provides high-end smartphones to several employees. The value of each smartphone is $500, and approximately 1,000 employees have these company-owned devices. In the past year, employees have lost or damaged 75 smartphones .
The P.E.R.I.E. process is illustrated in this case by the steps taken to address the issue of smoking rates in adults, being impacted by the rise in adolescent smoking behaviors. The first step of this process is the Problem. In this case, the text indicates, the problem is the growth rate of smoking teens in the 80’s and 90’s (Riegelman & Kirkwood, 2015). This in turn, led to an increase in adult smokers. This would raise rates again, after previously lowering them by approximately 50% (Riegelman & Kirkwood, 2015). The next step is Etiology. In this step we correlate smoking with cancer and the rise of adult smoking rates with the growth of adolescent smoking rates. This in turn, correlates adolescent cigarette smoking, to the rises in cancer (morbidity), and deaths from cancer (mortality). The case study also states, “…it was also found that nearly 90% of those who smoked started before the age of 18…” (Riegelman & Kirkwood, 2015). It was determined through behavior modification (preventing adolescent smoking), the rate of adult smokers would reduce. Thus, recommendations were introduced. The case study reveals, adolescents were targeted in cigarettes advertisements and marketing (Riegelman & Kirkwood, 2015). Cigarette availability was also an issue. Implementations of sales and advertisement campaign policies, were altered in reference to miners. The text reveals, once evaluated, strategies to reduce adolescent smoking
What is the probability that a randomly selected order will require between three and six days?
year 2 is $23.64 or $33.64. In each case the market expects the firm to earn 10%
1. How many inventory items with a market value of $25,000 or more are included in location 02?
CVS is the first the first national pharmacy chain store to ban tobacco and focus on the health and well-being of its patients and customers (Drell, 2014). This is a nationwide initiative, however, it doesn’t immediate solve the problem, but it is a step in the right direction. In light of CVS’s removal of all tobacco products from its shelves, the drugstore chain plans to offer its customers robust smoking cessation programs (Drell, 2014). The target public is the heavy tobacco users—the age range differs but it includes both men and women.
Additional sales dollars must be produced to cover each $1.00 of incremental advertising for Red-Away
A. Assuming the number of hours Anna Sheen will spend developing the profile section will = 4; Ralph Armentrout’s optimal stocking quantity is 516, as portrayed in the table below:
4. Using the following information for individuals and their willingness to pay for a bottle of ginger ale, calculate the total consumer surplus at a market price of $5.
Supplier A: EOQ = Square root of (2 x 1500 x $1,000) = S.R. of 3,000,000 = 209
Warner-Lambert, an international pharmaceutical and consumer products company in Ireland, planned to launch a new product in 1990 called Niconil which was made for those people who would like to quit smoking. Niconil were different than the existing smoking cessation products in the market. Managers of the company believed that Niconil had many competitive advantages over its competitors and were very confident of the product. But there were some arguments about pricing strategy and marketing communication: Should Niconil be priced at a premium over cigarettes or on a par with cigarettes?What kind of advertising and promotion method they should use? Before launch the product
When comparing nicotine addictions to the general populace, it has been determined that the rates are 75% - 90% versus 25% - 30%, meaning those who endure
By using option 1 TDS will sell 116,666.67 units more in 2003 considering is they don’t make any changes, they are only expected to reach 400,000 bottles in sales, as a result they will break even in option 2 and make a loss of (54,545.45 units) for option 3.
1. Tyler’s total sales forecast for the nursery’s first full year of operations is 228,000 plants at an average sales price of $5 per plant. As a first approximation, assume that 30 percent of the firm’s customers will pay 10 days after the sale, 55 percent will pay on the 30th day, and 15 percent will pay on the 60th day.
I have chosen cigarettes to be my market transaction as it is has a very large and wide market. A cigarette is a product consumed through smoking and manufactured out of cured and finely cut tobacco leaves and reconstituted tobacco, often combined with other additives1,