pharma projectstrategic marketing management
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PHARMA PROJECT
Submitted To:Faisal Qureshi
Submitted By:NameRegistration NumberEmail IDContact Number
M.Usman Khan16530m.usman.khan@live.com0345-2388791
Ubaid Ghazi14214ubaid.ghazi@pakbev.com0321-2888810
Ayaz ur Rehman16520ayaz.khan909@gmail.com0345-2999074
Shoaib Khan14550muhd.shoaibkhan@gmail.com0332-3259812
Submission Date:23rd-July-2014
Class Timings:Monday and Wednesday- (06:30 to 09:00)
INTRODUCTION
Acute diarrheal diseases are among the leading causes of mortality in infants and young children in many developing countries. In most cases, death is caused by dehydration. Dehydration from diarrhea can be prevented by giving extra fluids at home, or it can be treated simply, effectively, and cheaply in all age-groups and in all but the most severe cases by giving patients by mouth an adequate glucose-electrolyte solution called Oral Rehydration Salts (ORS) solution.
There are some medicines that may be sold without a prescription, in contrast to prescription drugsthese drugs are termed as Over-the-counter (OTC) drugs. Over-the-counter (OTC) drugs are non-prescription drugs sold in convenience stores, grocery stores and health shops. They range from pain relievers, cough and cold remedies to sleeping aids, weight reducing aids, and vitamin supplements. The OTC drugs are characterized as less risk taking, less dynamic, non-maintenance therapeutic pharmaceutical drugs. The efficacy and potency of these drugs have been well established. OTC drugs play an increasingly vital role in health care system.
Oral rehydration solutions (ORS) are used to treat dehydration caused by diarrhea, a common illness in travelers.An ORS contains three ingredients:1. Clean water that has been boiled or disinfected or from a commercially sealed bottle.2. Electrolytes (also called salts), which are chemicals that your body needs to function properly.3. Carbohydrates, usually in the form of sugar.The internationally endorsed definition of probiotics is live microorganisms that, when administered in adequate amounts, confer a health benefit on the host.What we are launching is a hybrid product which will serve the function of two OTC, as ORS and as probiotics for the consumers. We aim at producing a good quality product keeping the cost to its minimum.
FACTORS AFFECTING SALES OF OTCBased on the primary data collected from 115 respondents there are three factors that affect the sale of OTC. Most respondents considered Doctors prescription to be decisive factor in purchasing OTC. Second factor that respondents agreed most on was Pharmacist recommendation and third was previous experience. Summarizing the results of this particular question from the instrument it is worth noting that for an OTC it needs to be endorsed by Doctors firstly and then reminded by the pharmacists on a regular basis, this will in turn create a positive experience and recalling for the brand in future.
PRICE PER UNITPricing of a product depends on a lot of different variables , major consideration in pricing is the costing of the product, the advertising and marketing expenses, any price fluctuations in the market, distribution costs etc. Along with the above factors, there are also other things which have to be taken in consideration when deciding on a pricing strategy. Competition can be the best example. Based on the survey the average price per unit for the product is around Rs 25 and considering the fact that this is a new product and the competitive pricing we would launch the product at Rs 23 per unit.
PACKAGING DESIGNAs per the data most of the respondents are of the view that consumers prefer loose sachets for these kind of product so we will be placing a customized designed vertical carton box containing 10 sachets with an opening below which will be placed on the counter where customers can pull the sachets causing the above sachets to come down.
POSITIONING STRATEGY & PROMOTION TACTICS
Positioning
Target MarketThe product will provide health solution to anyone who is suffering from Diarrhea and with bad stomach, so the product is directed towards people suffering from this disease. The price we will be charging will cater mainly urban Middle and upper class of urban areas but is suited for lower class also. It is suited for lower class in two ways, one is that when it comes to medicine or OTC price is not really a factor that changes consumers preference and second, if price do become a factor that can change consumer decision so this product is not very expensive. Who will the decision maker in our target market? All the parents who have children of age less than 18 and all the adults.
Uniqueness:The differentiating factor for the product is that we are introducing ORS and Probiotics together for a very first time in this market. Currently there is no company that is offering this kind of product in market. This will help to cure diarrhea patients keeping them hydrated at the same time.
PromotionFor communicating the benefits of the product to the target market a Doctor will be taken on board which will be the face for this product. Doctor will be authentic source for consumers who will communicate all the benefits of the product.
AdvertisingWe want to reduce cost as much as possible so advertisement promotions will be done on print media and billboards. Besides this, streamers, banners and hangings will be displayed near big pharmacies of the city. This can also be followed by BTL activities where our representative will be present in these pharmacies to educate customers from our unique product. This will help customers to recall brand whenever they will visit pharmacies.
StationeryStationery, which includes letterheads, envelopes and business cards, is a means by which business image or name identification is projected.We can use this everyday means of presenting business image for our advantage.
Outdoor We will be placing billboards in different locations of the city and branding the product at bus stands as well.
Sales Locations:We will ensure the smooth Distribution of the product by assigning Sales Representatives for different territories. These Sales Representatives will have Zone wise supervisors to monitor their efficiency. Zone Supervisor will be responsible for achieving the targets set by the management.
TRADE PROMOTIONS FOR PHARMACIESIncentives and activities encourages Pharmacist to promote sale of of the product, which are directed in following ways. DiscountsWe will be offering 15% discount to the pharmacies which will give them incentive to purchase and sell the product at their stores.
Remodeling of PharmaciesShelf space will be designed with our product theme along with the Pharmacies boards.
PR CAMPAIGN FOR PHYSICIANSIntegrating a public relations campaign with a marketing program can improve the effectiveness of marketing program by ensuring the effective communication with groups of people who influence the purchase of a product, directly or indirectly. Taking the physicians on board will be our main focus as they will perform vital role in educating masses about the effectiveness of the product.
Seminars:We will let our on board doctors to educate the masses about our new product with the interactive sessions from customers. This will let us know customers reservations regarding the disease and regarding our product.
Conferences:
There will be semi annual conference of Management and Doctors in which they will discuss the issues faced by customers and to give new approach to take product further.
ESTIMATED MARKETING BUDGETWe want to launch a product considering minimum cost so the Marketing budget needs to also reflect that. Marketing campaign will be from two fronts, by print media and by outdoor advertisements through billboards.Outdoor AdvertisementWe have selected 6 sites considering the city traffic flow. There are 4 sites that we use for the first month at the time of launch to gain maximum attention, these sites are the most visited sites of the city. For second month other two site will be used for recalling of the brand.Site 1-Sher Shah Suri Road
Route:From A.O Tower (Triangle) towards Nagan ChowrangiRate:Rs.350,010 per monthOccupied For:1 Month
Site 2-Boat Basin
Route:From Korangi Road towards Boat BasinRate:Rs.399,990 per monthOccupied For:1 Month
Site 3-Shaheed-e-Millat Road
Route:From Central Jail Chowrangi towards Baloch Colony BridgeRate:Rs.350,010 per monthOccupied For:1 Month
Site 4-Shahrah-e-Faisal
Route:From Airport towards FTCRate:Rs.800,010 per monthOccupied For:20 Days
Site 5-Khayaban-e-Iqbal
Route:From Doo Talwar towards Club RoadRate:Rs.99,990 per monthOccupied For:1 Month
Site 6-Shaheed-e-Millat Road
Route:From Central Jail Chowrangi towards Baloch Colony BridgeRate:Rs.99,990 per monthOccupied For:1 MonthTOTAL OUTLAY ON OUTDOOR ADVERTISEMENT
SiteLocationOccupied for Cost Per MonthTotal Cost
Site 1SHER SHAH SURI ROAD1 Month 350,010 350,010
Site 2BOAT BASIN ROAD1 Month 399,990 399,990
Site 3SHAHEED-E-MILLAT ROAD1 Month 350,010 350,010
Site 4SHAHRAH-E-FAISAL20 Days 800,010 533,340
Site 5KHAYABAN-E-IQBAL1 Months 99,990 99,990
Site 6SHAHEED-E-MILLAT ROAD1 Months 99,990 99,990
Total 1,833,330
Print Media
PublicationsSizePositionDayFrequency in a MonthMonth Cost
MonTueWedFri
DAWN Newspaper15cms x 4colsFront Page - Metro (Khi Only)134,400---1134,400
The News20cms x 3colsAny Khi Only-51,000--151,000
Express Tribune15cms x 4colsInside Front Page (Metro)Khi Only47,250--47,250194,500
Jang20cms x 3colsFront page - Khi Only370,800---1370,800
Daily Express20cms x 3colsAny position - Khi Only--60,000-160,000
Total710,700
Total Marketing Budget,Outdoor AdvertisementRs.1,833,330Print MediaRs.710,700Total BudgetRs.2,544,030
ANSOFF MATRIX
EXISTING PRODUCTNEW PRODUCT
EXISTING MARKETMarket penetrationProduct Development
NEW MARKETMarket DevelopmentDiversification
This is a new product so its falls under Product development on the Ansoff grid.CONTINGENCY PLANA contingency plan is devised to mitigate critical risks should they occur. We need to find the risk associated with the product launch and its execution so that we prioritize the risk which are under our control and form plan to tackle it.Key Risks Hurdles in distribution Government Impose taxes or increases interest rates which causes the raw material price to go up Despite of our best efforts the product is unable to click We need to prepare alternate distribution plans in case our present distribution strategy does not fetch fruitful results. For this, we can use different distributors for serving different parts of the market.An increase in taxes and interest rates is not under our control so we can only increase prices in future should there be any need to do so.If the product fails to capture market and fails in generating sales then we will go for repositioning of the product. As per our data collection, our first priority for the product is to capture urban markets, but if it fails then we can aim for rural markets . This will not entail the company to incur huge investments again for launching it in rural areas but we may have to reduce its cost to coup with the purchasing power of rural area.
PIMARY REAEARCH:SAMPLE SIZE-PHARMACIST: 115SAMPLE SIZE-PHYSICIANS : 28
SAMPLE TYPE: Pharmacist and PhysiciansRESEARCH TOOL: Questionnaire Question 1:
Pain Killers and AnalgesicsVery low0
Low 3
Moderate33
High37
Very high43
Supplements and Multivitamins
Very low5
Low 8
Moderate45
High39
Very high19
LaxativesVery low9
Low 25
Moderate50
High19
Very high12
Antacids
Very low0
Low 16
Moderate31
High47
Very high21
Oral Rehydration Salts (ORS)Very low0
Low 5
Moderate38
High44
Very high29
Probiotics
Very low13
Low 34
Moderate53
High14
Very high2
Question 2: Advertising not at all18
marginally28
some extent38
resonably high28
very high4
Doctor's Prescription
not at all5
Marginally11
some extent20
resonably high33
very high47
Previous Experiencenot at all5
Marginally23
some extent39
resonably high33
very high15
Brand Image of OTC
not at all8
Marginally16
some extent38
resonably high37
very high17
Price(Affordability)
not at all15
marginally27
some extent34
resonably high23
very high17
Shelf Space
not at all24
Marginally32
some extent37
resonably high15
very high7
Pharmacist's Recommendation
not at all8
Marginally14
some extent40
resonably high40
very high14
Packaging
not at all30
Marginally30
some extent32
resonably high19
very high5
QUEStion 3:
rarely 41
ocassionally49
frequently26
Question 4:
highly unlikely2
unlikely23
possibly38
likely39
highly likely14
Question 5:
not at all4
Marginally15
some extent49
resonably high35
very high13
Question 6:
General Physicians63
Consultants11
pediatrician37
none of the all4
Question 7:
not at all4
Marginally14
some extent29
resonably high39
very high30
Question 8:
Trust and previous relationship with the pharmacist63
Price9
Better promised efficacy of the Alternative suggested by the pharma39
Others4
Question 10: Ready-to-use Liquid solutions17
Instant Powder form98
Question 11:One that makes approximately one liter of liquid solution and can offer around 4 adult doses83
One that makes can be dissolved in a glass of water and offers one single dose30
Question 12:Pack of 10 sachets or more10
A few loose sachets103
Question 13:RS.1 to 1028
11 to 2038
21 to 3010
31 to 4023
41 to 508
51 to 602
Question 14:Trade discounts:
not at all12
Marginally28
some extent39
resonably high23
very high14
Trade promotions:
not at all8
Marginally32
some extent42
resonably high18
very high15
Proven efficacy of the ORS:
not at all6
Marginally17
some extent17
resonably high34
very high42
Knowing that it is preferred and recommended by doctors:
not at all4
Marginally12
some extent22
resonably high38
very high40
Question 15:
Paper cartons or boxes that can be placed on shelf or counter68
Paper cartons or boxes that can be hung from a hook creating a dispenser-like packaging, making it easy to sell individual units (sachets)42
Other5
PHYSICIAN DATA ANALYSIS:QUESTION 2:Use of ORS12
Use of probiotics0
Use of ORS + Probiotics9
Use of drugs like Diphenoxylate to slow down the movement of intestines0
use of antiprotozoal and antibacterial agents0
Combination of more than one approach5
Others3
Question3no experience0
Too insignificant2
Somewhat satisfying7
Satisfying13
highly Satisfying4
Question 4Not recommended7
Highly skeptical1
Somewhat skeptical4
Favorable13
Highly favorable2
Question 5Strongly disagree1
Disagree3
Neither agree nor disagree9
Agree13
Strongly agree2
Question 6Strongly disagree0
Disagree2
Neither agree nor disagree2
Agree20
Strongly agree4
Question 7 :
Strongly disagree2
Disagree5
Neither agree nor disagree1
Agree10
Strongly agree10
Question 8 :Strongly disagree2
Disagree0
Neither agree nor disagree1
Agree21
Strongly agree4
Question 9 Strongly disagree1
Disagree3
Neither agree nor disagree2
Agree17
Strongly agree5
Question 10:
Lactobacillus acidophilusYes18
no10
Lactobacillus rhamnosusYes4
no24
Any otherYes2
no26
BifidobacterialongumYes4
No24
BifidobacteriabifidumYes13
no15
Question 11: very high3
High3
Moderate17
Low5
very low0
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