Panadol Marketing Mix

Assumptions: 1. As per the case, unit cost for producing each bottle of acetaminophen-based tablets (including Tylenol and Datril) is 60 cents 2. The trade cost for Approach 1 was assumed to be $1.69 in order for the pricing scenario to be perfectly equal to that of Tylenol (i.e. unit cost, trade cost, and ultimately selling price to end customers). 3. For simplicity, advertising is the only fixed

In period five, we introduced the line extension Allright; a 12-Hr muli-symptom relief capsule. We decided this extension would be successful, as the allergy market is very small and had an entrenched competitor. Therefore, while we were aware of potential cannibalization, we believed that the targeted market (retirees, empty nesters, and young singles) would have sufficient demand for our product. We also reasoned that this target was far enough removed from Allround’s to gain additional market share without taking any from Allround. However, this was not the case, as cannibalization was a pressing issue. Market share was gained at the expense of Allround.

Allstar’s Pharmaceutical division has a multi-symptom cold OTC medication (Allround) that is competing against nine brands from four competitors. The intent of this exercise is to evaluate Allround’s current position in the market, by analyzing its strengths, weaknesses, opportunities, and threats. There is also a proposed 10 year goal plan and strategy to establish Allstar as the industry leader of the OTC cold remedy market, while maintaining long term sustaining profitability.

In 2015, the pharmaceutical industry spent over 27 billion dollars on advertising. The two greatest components of this effort were promotional advertising and free medication sampling, which the pharmaceuticals invested 15.5 and 5.7 billion dollars respectively (“Persuading the Prescribers”). Promotional advertising involves direct contact with health professionals, the most common being extravagant lunch conferences held for physicians and their staff. On the other hand, sampling involves distributing free sample of medications to physicians, who then have a choice of providing these samples to patients. As a result of these methods, the industry has seen revenue around $400 billion with 90% of physicians having a relationship with a drug company (Campbell 2007). Moreover, the prices of prescriptions continue to rise; a copay of a generic drug is $11.72, preferred brand drug is $36.37 and a specialty drug is $58.37 (Coleman and Geneson 2014). Although the profits are immense in the numbers demonstrated above, it is no surprise when pharmaceutical drug companies elevate their prices even more. For instance, recently Turing Pharmaceuticals raised the price of their medication Daraprim from $13.50 to $750. Keep in mind, this medication is used for threatening parasitic infections, aids, and cancer with alternative options currently found to be inefficient (Pollack 2015). Another example of this practice involves cycloserine, a drug used to

During this time the first DTC print advertisement for Merck an “antipneumococcal vaccine, Pneumovax(pneumococcal vaccine polyvalent) was printed in Reader’s Digest (Ventola).” That created a chain effect and shortly later “Boots Pharmaceuticals ran the first DTC broadcast advertisement, which promoted the lower price of its prescription brand of ibuprofen (Rufen), compared with Motrin (Ventola).” Today, the US pharmaceutical industry spends $3.1 billion on advertising prescription drugs directly to consumers.

Always do comparison shopping. Do not jump right ahead and purchase the first product you come across with. The prices charged by different pharmacies for the exact same medications are often

All competitors of Allstar’s are diversified into other categories of the OTC market and not dependent upon just the cold segment. This is one area where Allstar can potentially improve its sales and diversify its product lines. Although Allstar has the highest brand awareness, it also has the highest price amongst competitors. The fact that Allround has a strong reputation in the market place due to the product effectiveness allows Allround to maintain a higher price than its competition. All other competitors supply its OTC in capsule form, which is the preferred method of consumption by consumers. Allstar must be aware of the various formulations of the competitors, be selective in considering new products to market, and pay attention to newly offered products and the markets the competitors are targeting. The Allstar team needs to reassess the strategy and approach each period based upon competitor information while maintaining the long-term strategic objectives.

Other factors include the use of distribution systems, drug shortages, pharmaceutical manufacturer mergers and acquisitions, patent expirations, cost and availability of raw materials, and profit driven businesses (Abramowitz & Cobaugh, 2016). The rising cost of prescription drugs and healthcare in general challenges the access and affordability of quality care to consumers not just in the United but also consumers around the world (GEN News, 2012). In addition to cost and access to care, the continuous rise in prescriptions drugs may have a negative effect on utilization of healthcare and satisfaction with healthcare system (Abramowitz & Cobaugh,

Marvin Koslow, vice president for marketing services at Bristol-Myers is going to choose a positioning strategy for Datril, an acetaminophen based analgesic, in order to solidify Bristol-Myers’ position in the analgesics market and gain share in the rapidly growing acetaminophen market. There are two possible options: ‘Pricing at par with Tylenol and it as a Tylenol substitute, featuring Bristol-Myers product’ and ‘low Priced alternative to Tylenol’. I strongly recommend that Bristol-Myers choose the former option with a modification.

Prescription medications serve the purpose of helping individuals with symptoms that are occurring in the short term. The perception people have on prescribed medication is widely positive due to the high number of daily consumers, but the world is only viewing the positives on this controversial topic. Consumers who have illnesses should not rely on prescription medications due to the negative side effects, high addiction rates and potential increase in crime proving that home remedies are much more reliable, healthier and safer alternatives.

The company had two alternative strategies for its Datril brand; the first was to promote it as a substitute for Tylenol while the other was to offer it at a lower price than Tylenol. The focus of the first strategy was to promote Datril as a new brand of a well-renowned organization, Bristol-Myers. It was proposed that the company will promote Datril by associating it with Bristol-Myers in all its commercial ads and promotional campaigns on all the

The market for acetaminophen was growing at a rate of 5:1 to that of aspirin. Studies had shown that the side-effects from acetaminophen were less than aspirin. Bristol-Myers could have used the change in consumer consumption pattern and the shifting demand between the 2 analgesic variants as a means for positioning Datril using an effective campaign strategy.

In the United States, a drug can only be advertised legally after being approved by the Food and Drug Administration (FDA). Once attaining at least one FDA-approved use, physicians can prescribe a drug for other unapproved uses, based on their clinical judgment; this is referred to as “off-label use” (McCambridge, 2008). In general, marketing drugs for off-label uses is illegal; however, pharmaceutical companies have gone to various lengths within their legal rights to accomplish exactly that.

Pricing must be decided for Metabical that captures the accurately forecasted demand of the target market. Because of heavy competition such as Alli , it is important to create a package that can be priced accurately to drive up sales and consistency of a 12 week drug.

The Governments are the bulk purchasers of these drugs and the various government regulations determine the price that the pharmaceutical companies can charge. This varies from country to country.