ritemed metformin group marketing plan

10 Step Marketing Plan for RiteMed Metformin HCl08 January 2011

Justine Andrea C. Paredes * Marie Isobelle E. Ramos * Jose Mariano T. TanMikhail G. Tenazas * Maria Ellaine Grace K. Uy

Five StepsPart I of II: PTM and Positioning

1. Target Market: Diabetes Type 2 Patients2. NWE: Optimal Glycemic Control3. Choice: Branded and/or

Generic Medications4. Gap: Low-Cost High-Quality Drugs5. Market Size: PhP2.3 Billion (Total)

PhP1.5 Billion Niche

10 Step Marketing Plan for RiteMed Metformin: Justine Andrea C. Paredes * Marie Isobelle E. Ramos * Jose Mariano T. Tan * Mikhail G. Tenazas * Maria Ellaine Grace K. Uy

Five StepsPart II of II: Marketing Mix & Strategy

6. Product: Metformin HCl from RiteMed7. Price: 20-80% less of Branded Price8. Promotion: Redesigning RiteMed Logo

Branding the ProductMaximize Price Leadership

9. Place: Unilab Network, Nationwide10. Strategy: Branded Generics

(Low Cost & High Quality)


Part 1: Step 1 of 5Positioning to the Primary Target Market

Primary Target Market

Type II Diabetes Patients

Demographics:

> 40 years old

M > F *

Social Class C to E

Overweight *



Lifestyle:

Minimal Physical Exercise

High Consumption of Processed Foods

High Sugar Diet


Health-Seeking Behavior




Consumption Behavior:

500 mg Tablet

Two Tablets per Day

Regular Hospital Monitoring

Multiple Medications

Lifestyle Changes


Part 1: Step 2 of 5Needs Wants and Expectations of Target Market

Maslow’s Hierarchy of Needs

Needs, Wants and Expectations

Realization of Goals

A Foundation ofGood Health


Developmental Stages of Erik Erikson



Developmental Stages of Erik Erikson

Middle Adulthood (35 to 55)

Generativity vs Stagnation

Diseases Produces Fear of Inactivity & Meaninglessness



Wants:

Quality Assurance

Efficacy

Low-Cost

Limited Side Effects



Expectations:

Decrease Blood Sugar Level

Good Glycemic Control

Controlled Side Effects

No Disease Progression

Generics Price Range

Good Value!

Fulfillment of Brand Promise


Part 1: Step 3 of 5Direct and Indirect Competitors

Competitors

Boie

Britton

Health Saver

Littman

Metro Drug

Metrolink Pharm

Natrapharm

NextChem

Pharma Nutria

Sanofi-Aventis

Winthrop

Zuellig

Direct Competitors (Branded):


Competitors

The Generics Pharmacy

Generika Pharmacy

Direct Competitors (Generic):


Competitors

Exercise

Diet

Herbal Preparations

Insulin

Secretagogues

Thiazolidinediones

Alpha-glucosidaseInhibitors

Incretin-based Treatments

Amylin Analogs

Indirect Competitors:


Competitors

Efficacy:

Glycemic Reduction

Glycemic Control

Reduction of DM Sequelae

Safety:

Minimal Side Effects

Variables:


Competitors

Price

Ease of Treatment Regimen

Brand Perception

Name Recall

Physician Prescription Practice

Accessibility

Availability

Variables:


Position Map

Price

Quality: Regulated (BFAD)

Quality Perception

Variables:


Price-Brand Recall for Quality Matrix

Competitive Position Map

<50 50-100 101-150 151-200 >200

> P8.51

P7.25-P8.50

P5.76-P7.00

P4.51-P5.75

P3.25-P4.50

< P3.25

Unilab +

RiteMed

Zuellig

Brand Portfolio Size as a Function of Brand Saliency & Recall

Boie

Metro DrugNextChemPharma Nutria

Britton

Pri

ce p

er U

nit

Littman

GenerikaThe

GenericsPharmacy

WinthropNatrapharm

Source: IMS 2003 & MIMS 2010

Price-Brand Recall for Quality Matrix

Competitive Position Map

<50 50-100 101-150 151-200 >200

> P8.51

P7.25-P8.50

P5.76-P7.00

P4.51-P5.75

P3.25-P4.50

< P3.25

Unilab +

RiteMed

Zuellig

Brand Portfolio Size as a Function of Brand Saliency & Recall

Boie

Metro DrugNextChemPharma Nutria

Britton

Pri

ce p

er U

nit

Littman

GenerikaThe

GenericsPharmacy

WinthropNatrapharm

Source: IMS 2003 & MIMS 2010

Niche as High Brand Recall for

Quality Low-Cost Drug!

Part 1: Step 4 of 5Customer-Competition GapDemand-Supply Gap

Demand-Supply Gap

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.

Wide Market Distribution

RiteMed Metformin is the only product that:


Part 1: Step 5 of 5Market Size

Market Size (DOH Data & Journals)

3.4 Million Filipinos with Diabetes

94% Class C-E


Oral Anti-Diabetic Consumption 2007




94% Class C-E

31% Prescribed Metformin


Oral Anti-Diabetic Consumption 2007


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




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 10 Step Marketing Plan for RiteMed Metformin: Justine Andrea C. Paredes * Marie Isobelle E. Ramos * Jose Mariano T. Tan * Mikhail G. Tenazas * Maria Ellaine Grace K. Uy

(Business Monitor International Data)

Market Size


Market Size (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: PhP 1.08 Billion


Market Size (Company)

RiteMed Revenue

PhP 5.29 Billion

Share of Oral Anti-Diabetics

2.59% or PhP 1.5 Billion

Market Size: PhP 1.5 Billion


Market Size

Local Data: PhP1.2 Billion

International Data: PhP1.08 Billion

Company Data: Php1.5 Billion

Market Size: PhP 1 to 1.5 Billion


Marketing Mix StrategyPart II of II

Part 2: Step 6 of 10Product

Metformin HCl Leaders


Product Feature

RiteMed Metformin HCl


Product Information

Contents:

Metformin HCl

Indications:

Type 2 diabetes inadequately controlled by diet and exercise alone.

Dosage:

Initially 500 mg every 12 hr, dose may be gradualyincreased to a max of 2250 mg daily.


Product Information

Administration:

Administered with After Meals

Contraindications:

Renal Impairment, Congestive Heart Failure, Acute or Chronic Metabolic Acidosis.

Special Precautions:

Elderly, Hepatic and Renal impairment


Product Information

Adverse Drug Reactions:

Anorexia, nausea, vomiting, diarrhea, lactic acidosis, decreased vit B12 absorption

Preparation:

In 500 mg and 850 mg tablets


Part 2: Step 7 of 10Price

Price

20-80% Less Compared to Branded Equivalents

Brand(500mg Preparation)

Price per Tablet(PhP)

PercentagePrice Difference

RiteMed 3.09 -

United Lab Glumet 6.25 + 102.26%

Boie Metformin 4.00 + 29.4%

Britton Briform 4.50 + 45%

Pharma Nutria Nidcor 4.31 + 39.49%

Zuellig Diafat Sandoz 5.19 + 67.9%

Zuellig Fornidd 6.82 + 120.7%

Zuellig Glucophage 10.50 + 239.8%

Zuellig Humamet 8.00 + 158.9%

Zuellig Pharex Metformin 3.25 + 5.18 %10 Step Marketing Plan for RiteMed Metformin: Justine Andrea C. Paredes * Marie Isobelle E. Ramos * Jose Mariano T. Tan * Mikhail G. Tenazas * Maria Ellaine Grace K. Uy

Price

20-80% Less Compared to Branded Equivalents

Brand(500mg Preparation)

Price per Tablet(PhP)

PercentagePrice Difference

RiteMed 3.09 -

Metro Drug Panfor SR-500 6.50 110.36%

Metro Drug Diazen 3.50 13.26%

Metro Drug Glucoform 5.60 81.2%

Metro Drug Glucomed 3.42 10.68%

Metro Drug Neoform 500 3.35 8.41%

Natrapharm I-Max 5.60 81.22%

NextChem Insunex 3.50 13.27%

Littman Neomet 5.00 61.81%

Winthrop Metformin HCl 4.50 45.6 %10 Step Marketing Plan for RiteMed Metformin: Justine Andrea C. Paredes * Marie Isobelle E. Ramos * Jose Mariano T. Tan * Mikhail G. Tenazas * Maria Ellaine Grace K. Uy

Price

Cheapest Drug Available in the Market

43% Cheaper Than Industry Average

Main market strategy: Price leader

Cheapest Alternative for Metformin

While Assuring Quality and Efficacy of Product


Part 2: Step 8 of 10Promotion

Promotional Strategies

Advertisements Tri-Media

Public Relations Corporate Social Responsibility, Partnership with

Public/Private Sector(s)

Marketing Sales Representatives

Health Education Campaigns


ritemed metformin group marketing plan

Documents

justine andrea

marie isobelle

jose mariano

maria ellaine grace

ritemed metformin hcl

behaviorprimary target

redesigning ritemed

marketing mix strategy6