Problem Statement As Pharmacia & Upjohn ready their Rogaine product to be distributed over the counter the company faces many new challenges not previously considered. Pharmacia has estimated that once in the over the counter market Rogaine would reach $250 million in sales within their first year and $1 billion over a period of five years. The numbers mentioned above where forecasted under the assumption that the FDA would approve a request for three year marketing exclusivity, this request was however denied. Pharmacia & Upjohn must now consider the possibility of loosing 60% of their volume to competition. The brand will have to reevaluate their potential first year sales and decide how they will modify their marketing plan to …show more content…
One major characteristic of the growth stage is increased competition. In the past Rogaine was the only product offered containing their patented formula, however, there is now the possibility of at least three other brands using similar formula’s coming to the market. True to products in the growth stage Rogaine will be making a few changes to their marketing mix. Pharmacia & Upjohn plan to increase the percentage of minoxidil from 2 to 5 percent, sell Rogaine at half the price of the prescription version, distribute to retail outlets and increase promotion efforts. Marketing Profitability. The possibility for intense competition is very high for Rogaine. This is due to Pharmacia & Upjohn’s patent expiring for Rogaine and the denial of their request for a three year period of marketing exclusivity. As a result Bausch & Lomb, Alpharma, and Lemmon Company have all considered the possibility of bringing hair regrowth products to the market. The threat of substitutes is also particularly high due to generic brands offering similar products coming to the market. Generic brands typically sell for 25 percent to 50 percent less than brand name products. As a result of a greater number of options customers will now have more bargaining power than in the past. Distribution Channels. As a prescription drug Rogaine’s strategy was to first educate members of their sales force who would then call on physicians, dermatologist, and
• Product Range: Superdrug offers its customers an average of over 10,000 products (Michael Page, 2006). Moreover, its own-brand products account for over a quarter of total sales, which adds to its strength. However, it diversifies into other product areas vis-à-vis in-store pharmacies (225 to date), in-store fine fragrance counters (240 to date), Vitamins and non-prescriptive medicinal products, Baby toiletries, food and accessories, Hosiery Drinks and snacks, Photographic processing and film accessories Newspapers and magazines (400 stores) Household accessories (Superdrug.com,
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.
Allround is sold through both direct and indirect channels, the venue of direct to the retailer allows for more control over the product placement in the modes of independent drug stores, but for larger stores such as grocery stores, mass merchandisers, and chain drug stores the study found that they focus concerns on product turnover and given allowances for the product.
Hearst and the business team have three options, on one hand a line extension or new product positioned against Plax could be introduced into the market and in the other hand doing nothing and just looking at claims other than “breath” instead of adding a new product. Launching a new product “new pre-brushing rinse,” for example would cannibalize a part of Scope sales, also the delivery, marketing and capital costs of P&G will increase if a new rinse was launched and the user of Scope would be confused since he/she saw in the old scope a breath refreshment, taking into consideration that the new rinse is not any better than Plax in reducing plaque, but at the same time it may increase the market share of P&G and increase its profit. Whereas adding a new claim for Scope would not increase the volume of sales, but it could prevent current users of Scope to switch and it would stabilize the
The company that I will be writing about is called Aleve. Aleve is an OTC drug that is made from the company known as Bayer. This medication is known for being a pain reliever that provides relief for a variety of condition. Just like any other company, Aleve has to be able to create a marketing plan. This plan has to be very strategic in order to gain customers and investors. The company must choose a market that they want to target. By doing this they must find out information about their competitors. This information will help them to come up with a marketing strategy that will tell customers why they should
Direct to consumer is a form of advertising that markets directly to consumers bypassing the distributor. In the mid 1980’s pharmaceutical
The company is so large that no one drug can lift it from its current sales doldrums. In addition, the company was once highly attractive to investors, but its recent stock price fell to 1997 lows. This may put pressure on the company to attempt acquisitions at a time when the company is ill-equipped to integrate a new company into its organization, and it is engaged in a cost-cutting program at a time when it may need to invest even more in research and development (McTigue Pierce, 2005).
provider of this dependent submarket, CMI has limited alternatives, other than expanding its market share, to counter an adverse economic environment. • Historically, CMI has competed through its technical competence and by its product performance, presenting superior products as result of effective R&D processes. • Other collaborators / prescribers / influencers have an important role in the market. As CMI prepares to launch a new revolutionary
Providing Over-The-Counter medicine Allstar targets people who have common health problems. The best way to segment Allstar’s customers would be by the following two major categories: illness (cold, cough, allergy) and demographics (young singles, young families, mature families, empty nesters, retired). Allstar Brands invests in marketing research to learn about the ever changing preferences and trends of the market. The information the Company gathers from this research is then used to make according decisions to satisfy each particular category of customer.
As seen in exhibit 2 as well, the company’s unit share and dollar share steadily increased minimally from 2005 to 2007. Unit share increased from 21% to 21.3%, while dollar share increased from 15.7% to 16.1%. Similarly, US sales increased in HPL’s Target Markets for skin care, oral hygiene, personal hygiene, and hand and body care from 2003 to 2007, making the package more appealing to the company. With HPL’s sales into its retail channels increasing from 2003 to 2007, in addition to the increase in sales, label shares, and such aspects as revenue, it is evident that the company’s financial performance for the past few years has been favorable.
* Augustine Medical, Inc. is using a push strategy. They are relying on distributors to push their products on to their prospective buyers.
The quest for beauty is an endless endeavour at all times. Despite the old saying cautioning us that beauty is only skin deep, billions of dollars is spent on skin care products every year for men and women, young and old alike. In this multi-million-dollar industry, every company tries hard to maximize their profit. One of the most common methods they apply is market segmentation.
Research indicates in Europe there are large price differences among hair care products. P&G has decided that it should place the new shampoo in the premium-priced segment; this is done in order to keep up the image of the shampoo as a high quality and innovative product. P&G should charge premium price in each country to be sold for 4.99 DM for the 200 ml bottle and for 5.99 DM for the 250 ml bottle in all the countries which had had been accepted during the consumer tests. The company cannot charge a price very few people can afford, this will also not be profitable for the company.
There are a variety of distribution channels used in the marketing of cosmetic products which include examples such as product counters set up in department stores and product distribution through shelf display in supermarkets. These intermediaries make selling more efficient by minimizing the number of contacts a company has to make by handling all the individual contacts with customers and providing a range of goods to customers at one location. All
An External Factor Evaluation (EFE) allows strategies to summaries and evaluate economic, social, and cultural factor through the uses of a numerical rating. In our case we evaluated the EFE of Estee Lauder. By numerically scaling Estee Lauder’s opportunities and threats we analyzed the importance of the programs they have to offer. First assigning each factor a weight of importance