10-step marketing plan ritemed metformin hcl tanjm

JOSE MARIANO TAN 29 NOVEMBER 2010

10-STEP MARKETING PLAN FOR

Metformin HCl ®

FIVE STEPS FOR PART 1

  1. Target Market: Diabetes Type 2 Patients"  2. NWE: Optimal Glycemic Control   3. Choice:

  Branded and/or   Generic Medications

  4. Gap: Branded Generics Strategy   5. Market Size:

  PhP2.3 Billion (Total)   PhP1.2 Billion Niche

FIVE STEPS FOR PART 2

  1. Product: Metformin HCl from RiteMed"  2. Price: 20-80% less of Branded Price   3. Promotion:

 Broadcast Trimedia (Unilab Guarantee)  Sales Representative

  4. Place: Unilab Network, Nationwide   5. Strategy: Straddling

(Low Cost & High Quality)

Positioning to the Primary Target Market

Part 1: Step 1 of 5

Primary Target Market

  Demographics:   > 40 years old   M > F*

  Social Class C to E   Overweight*

  Lifestyle:   Minimal Physical Exercise   High Consumption of Processed Foods and High Sugar Diet

Primary Target Market

  Consumption Behavior:   500 mg Tablet   2x/day   Regular Hospital Monitoring   Multiple Medications   Lifestyle Changes

Needs Wants and Expectations of Target Market

Part 1: Step 2 of 5

Needs, Wants and Expectations

  Maslow’s Hierarchy of Needs

Good Health

Realization of Goals

Needs, Wants and Expectations

  Developmental Stages of Erik Erikson

Needs, Wants and Expectations

  Developmental Stages of Erik Erikson   Middle Adulthood (35 to 55)   Generativity (Fear of inactivity and

meaninglessness)   Triggered by Disease States

Needs, Wants and Expectations

  Maslow’s Hierarchy of Needs

Good Health

Realization of Goals Generativity!

Needs, Wants and Expectations

  Wants:   Quality Assurance   Efficacy   Low-Cost   Limited Side Effects

Needs, Wants and Expectations

  Expectations:   Decrease Blood Sugar Level   Good Glycemic Control   Controlled Side Effects   No Disease Progression   Generics Price Range

Direct and Indirect Competitors

Part 1: Step 3 of 5

Competitors

  Boie   Britton   Health Saver   Littman   Metro Drug   Metrolink Pharm   Natrapharm

  NextChem   Pharma Nutria   Sanofi-Aventis   Unilab   Winthrop   Zuellig

  Direct Competitors (Branded):

Competitors

  The Generics Pharmacy   Generika

  Direct Competitors (Generic):

Competitors

  Indirect Competitors:   Exercise   Diet   Insulin   Insulin Secretagogues

  Thiazolidinediones   Alpha-glucosidase Inhibitors   Incretin-based Treatments   Amylin Analog

Competitors

  Variables:   Efficacy:

  Glycemic Reduction   Glycemic Control   Reduction of DM Sequelae

  Safety:   Minimal Side Effects

Competitors

  Variables:   Price   Ease of Treatment   Brand Perception   Name Recall   Physician Prescription Practice   Accessibility   Availability

Competitive Position Map: Price-Brand Recall for Quality Matrix

Low Medium High

> P8.51

P7.25-P8.50

P5.76-P7.00

P4.51-P5.75

P3.25-P4.50

< P3.25 Unilab

+ RiteMed

Zuellig

Brand Recall: Quality

Boie Metro Drug NextChem Pharma Nutria

Winthrop Britton

Pric

e pe

r U

nit

Natrapharm Littman

Generika The

Generics Pharmacy

Competitive Position Map: Price-Brand Recall for Quality Matrix

Low Medium High

> P8.51

P7.25-P8.50

P5.76-P7.00

P4.51-P5.75

P3.25-P4.50

< P3.25 Unilab

+ RiteMed

Zuellig

Brand Recall: Quality

Boie Metro Drug NextChem Pharma Nutria

Winthrop Britton

Pric

e pe

r U

nit

Natrapharm Littman

Generika The

Generics Pharmacy

Niche as Quality Low-Cost Drug!

Customer-Competition Gap Demand-Supply Gap

Part 1: Step 4 of 5

Demand-Supply Gap:

  RiteMed Metformin is the only product that:   Assures Quality of Branded Products

  Rite Medicine   Rite Formulation

  At Price of Generic Drugs   Rite Price

  Other drugs assure quality at a price of high cost or provide low cost with questionable quality.

Market Size Part 1: Step 5 of 5

Market Size (DOH Data & Journals)

  3.4 Million Filipinos with Diabetes   94% Class C-E

Oral Anti-Diabetic Consumption 2007

Market Size (DOH Data & Journals)

  3.4 Million Filipinos with Diabetes   94% Class C-E   31% Prescribed Metformin

Generic Drug Use (2010)

  Social Weather Stations (SWS) survey showed the percentage of Filipinos using generic drugs increased to 55 percent in 2008.

Market Size (DOH Data & Journals)

  3.4 Million Filipinos with Diabetes   94% Class C-E   31% Prescribed Metformin   55% Use Generic Drugs   PhP 3.15 Retail Cost of 1 Metformin HCl Tab   Consumption: 2x/Day

Market Size: PhP 1.2 Billion

Market Size (Business Monitor International Data)

Market Size (Business Monitor International Data)

  Philippine Pharmaceutical Industry  PhP116 Trillion

  Share of Oral Anti-Diabetics  3% or PhP3.5 Billion

  Share of Metformin  31% or PhP1.08 Billion

Market Size: PhP1.08 Billion

Market Size

 Local Data: PhP1.2 Billion   International Data: PhP1.08 Billion Market Size: PhP1-1.2 Billion

Marketing Mix Strategy Part 2: Steps 6 to 10

Product Part 2: Steps 6 of 10

Metformin HCl Tablet Leaders

Product

  Contents: Metformin HCl   Indications: Type 2 diabetes

inadequately controlled by diet and exercise alone.

  Dosage: Initially 500 mg every 12 hr, dose may be gradualy increased to a max of 2250 mg daily.

  Administration: Taken with food

Product

  Contraindications: Renal impairment, CHF requiring pharmacologic treatment, acute or chronic metabolic acidosis

  Special Precautions: Elderly, hepatic and renal impairment

  Adverse Drug Reactions: Anorexia, nausea, vomiting, diarrhea, lactic acidosis, decreased vit B12 absorption

  Preparation: In 500 mg and 850 mg tablets

Price Part 2: Steps 7 of 10

Price

  500 mg Tablet: PhP3.15   Cheapest Drug in the Market   43.7% Cheaper than Industry Average!

Promotion Part 2: Steps 8 of 10

Promotion (Present Strategies)

  Advertising: Television and Radio   Public Relations: Corporate Social

Responsibility   Direct Marketing: Sales Representatives

Promotion (Present Strategies)

RiteMed manufactures and markets off-patent pharmaceuticals priced 20 to 80 percent lower

than equivalent branded drugs.

Promotion (Present Strategies)

Promotion (Present Strategies)

http://www.youtube.com/watch?v=n1LHtncXXPA&feature=related

Promotion (Present Strategies)

http://www.youtube.com/watch?v=NtVAuZSUjmY&feature=related

Promotion (Present Strategies)

Promotion (Present Strategies)

Sales Representatives

Promotion (Proposal)

+

Promotion (Proposal)

Source of Idea

Promotion (Proposal)

Unilab Yan! Unilab Guarantee Seal

Promotion (Proposal)

  Phenomenon of Branded Generics

  “Company-branded generics can charge more for the promise of quality.”

  “Patients prefer brands, as long as they are the main payers, they will continue to use branded generics.”

Competitor Promotions

  Leading Pharmaceuticals with NO Metformin Products:  Pfizer Inc  Wyeth Philippines  AstraZeneca  Bristol-Myers Squib  Novartis  Abott Lab  Roche Philippines

Competitors

  Boie   Britton   Health Saver   Littman   Metro Drug   Metrolink Pharm   Natrapharm

  NextChem   Pharma Nutria   Sanofi-Aventis   Unilab   Winthrop   Zuellig

  Direct Competitors (Branded):

Competitors

  No Broadcast Media

Advertisement   Reliance on:

 Sales Representatives  Product Samples  Product Peripherals  Sponsorship Programs

 Events  Purchases

Direct Competitors (Branded):

Competitors

  The Generics Pharmacy

  Generika

  Direct Competitors (Generic):

http://www.youtube.com/watch?v=OGufEVhhf3Y&feature=related

http://www.youtube.com/watch?v=Z2ocsYU2i-s&feature=player_embedded

Place Part 2: Steps 9 of 10

Place

  RiteMed is available in all Major Pharmacies Nationwide: Using logistical leverage of Unilab!

Generic Winning Strategy Part 2: Steps 10 of 10

Generic Winning Strategy

  Branded-Generics Strategy!   RiteMed’s Generic Strategy is to Dominate

Low-Cost Generics Market by Providing High Quality Assurance of its Parent Brand, Unilab.

  It benefits from the distribution and market leverage of Unilab.

Summary

FIVE STEPS FOR PART 1

  1. Target Market: Diabetes Type 2 Patients"  2. NWE: Optimal Glycemic Control   3. Choice:

  Branded and/or   Generic Medications

  4. Gap: Branded Generics Strategy   5. Market Size:

  PhP2.3 Billion (Total)   PhP1.2 Billion Niche

FIVE STEPS FOR PART 2

  1. Product: Metformin HCl from RiteMed"  2. Price: 20-80% less of Branded Price   3. Promotion:

 Broadcast Trimedia (Unilab Guarantee)  Sales Representative

  4. Place: Unilab Network, Nationwide   5. Strategy: Straddling

(Low Cost & High Quality)