Essay on Rogaine Case

1376 Words6 Pages
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
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