ten step marketing plan for ritemed metformin hcl

10 Step Marketing Plan for RiteMed Metformin HCl 08 January 2011 Jus-ne Andrea C. Paredes * Marie Isobelle E. Ramos * Jose Mariano T. Tan Mikhail G. Tenazas * Maria Ellaine Grace K. Uy

Five Steps Part I of II: PTM and Posi-oning

1. Target Market: Diabetes Type 2 Patients 2. NWE: Optimal Glycemic Control 3. Choice: Branded and/or

Generic Medications 4. Gap: Low-‐Cost High-‐Quality Drugs 5. Market Size: PhP2.3 Billion (Total)

PhP1.5 Billion Niche

10 Step Marke-ng Plan for RiteMed MeLormin: Jus-ne Andrea C. Paredes * Marie Isobelle E. Ramos * Jose Mariano T. Tan * Mikhail G. Tenazas * Maria Ellaine Grace K. Uy

Five Steps Part II of II: Marke-ng Mix & Strategy

6. Product: Metformin HCl from RiteMed 7. Price: 20-‐80% less of Branded Price 8. Promotion: Redesigning RiteMed Logo

Branding the Product Maximize Price Leadership

9. Place: Unilab Network, Nationwide 10. Strategy: Branded Generics

(Low Cost & High Quality)


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

Primary Target Market

  Type II Diabetes Pa-ents

  Demographics:   > 40 years old   M > F *   Social Class C to E   Overweight *



  Lifestyle:   Minimal Physical Exercise   High Consump-on of Processed Foods   High Sugar Diet


Health-‐Seeking Behavior




  Consump-on Behavior:   500 mg Tablet   Two Tablets per Day   Regular Hospital Monitoring   Mul-ple Medica-ons   Lifestyle Changes


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

Maslow’s Hierarchy of Needs

Needs, Wants and Expectations

Realiza-on of Goals

A Founda-on of Good Health


Developmental Stages of Erik Erikson



  Developmental Stages of Erik Erikson

  Middle Adulthood (35 to 55)

  Genera-vity vs Stagna-on   Diseases Produces Fear of Inac-vity & Meaninglessness



  Wants:   Quality Assurance   Efficacy   Low-‐Cost   Limited Side Effects



  Expecta-ons:   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 5 Direct and Indirect Competitors

Competitors

  Boie

  Brigon   Health Saver   Ligman   Metro Drug   Metrolink Pharm   Natrapharm

  NextChem   Pharma Nutria   Sanofi-‐Aven-s   Winthrop   Zuellig

  Direct Compe-tors (Branded):


Competitors

  The Generics Pharmacy   Generika Pharmacy

  Direct Compe-tors (Generic):


Competitors

  Exercise   Diet   Herbal Prepara-ons   Insulin   Secretagogues   Thiazolidinediones

  Alpha-‐glucosidase Inhibitors

  Incre-n-‐based Treatments

  Amylin Analogs

  Indirect Compe-tors:


Competitors

  Efficacy:   Glycemic Reduc-on   Glycemic Control   Reduc-on of DM Sequelae

  Safety:   Minimal Side Effects

  Variables:


Competitors

  Price   Ease of Treatment Regimen   Brand Percep-on   Name Recall   Physician Prescrip-on Prac-ce   Accessibility   Availability

  Variables:


Position Map

  Price   Quality: Regulated (BFAD)   Quality Percep-on

  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 Drug NextChem Pharma Nutria

Bri5on

Price pe

r Unit

Littman

Generika The

Generics Pharmacy

Winthrop Natrapharm

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 Drug NextChem Pharma Nutria

Bri5on

Price pe

r Unit

Littman

Generika The

Generics Pharmacy

Winthrop Natrapharm

Source: IMS 2003 & MIMS 2010

Niche as High Brand Recall for Quality Low-‐Cost

Drug!

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

Demand-‐Supply Gap

  Assures Quality of Branded Products   Rite Medicine   Rite Formula-on

  At Price of Generic Drugs   Rite Price

  Other drugs assure quality at a price of high cost or provide low cost with ques-onable quality.

  Wide Market Distribu-on

  RiteMed MeLormin is the only product that:


Part 1: Step 5 of 5 Market Size

Market Size (DOH Data & Journals)

  3.4 Million Filipinos with Diabetes

  94% Class C-‐E


Oral An--‐Diabe-c Consump-on 2007





  31% Prescribed MeLormin


Oral An--‐Diabe-c Consump-on 2007


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





  31% Prescribed MeLormin

  55% Use Generic Drugs

  PhP 3.15 Retail Cost of 1 MeLormin HCl Tab

  Consump-on: 2x/Day

Market Size: PhP 1.2 Billion 10 Step Marke-ng Plan for RiteMed MeLormin: Jus-ne Andrea C. Paredes * Marie Isobelle E. Ramos * Jose Mariano T. Tan * Mikhail G. Tenazas * Maria Ellaine Grace K. Uy

(Business Monitor Interna-onal Data)

Market Size


Market Size (International Data)

  Philippine Pharmaceu-cal Industry   PhP116 Trillion

  Share of Oral An--‐Diabe-cs   3% or PhP3.5 Billion

  Share of MeLormin   31% or PhP1.08 Billion

Market Size: PhP 1.08 Billion


Market Size (Company)

  RiteMed Revenue   PhP 5.29 Billion

  Share of Oral An--‐Diabe-cs   2.59% or PhP 1.5 Billion

Market Size: PhP 1.5 Billion


Market Size

  Local Data: PhP1.2 Billion

  Interna-onal Data: PhP1.08 Billion

  Company Data: Php1.5 Billion

Market Size: PhP 1 to 1.5 Billion


Marketing Mix Strategy Part II of II

Part 2: Step 6 of 10 Product

Metformin HCl Leaders


Product Feature

RiteMed Metformin HCl


Product Information

  Contents:   MeLormin HCl

  Indica-ons:   Type 2 diabetes inadequately controlled by diet and

exercise alone.

  Dosage:   Ini-ally 500 mg every 12 hr, dose may be gradualy

increased to a max of 2250 mg daily.


Product Information

  Administra-on:   Administered with Aper Meals

  Contraindica-ons:   Renal Impairment, Conges-ve Heart Failure, Acute or

Chronic Metabolic Acidosis.

  Special Precau-ons:   Elderly, Hepa-c and Renal impairment


Product Information

  Adverse Drug Reac-ons:   Anorexia, nausea, vomi-ng, diarrhea, lac-c acidosis,

decreased vit B12 absorp-on

  Prepara-on:   In 500 mg and 850 mg tablets


Part 2: Step 7 of 10 Price

Price

  20-‐80% Less Compared to Branded Equivalents Brand

(500mg Preparation) Price per Tablet

(PhP) Percentage

Price 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 Marke-ng Plan for RiteMed MeLormin: Jus-ne 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) Percentage

Price 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 Marke-ng Plan for RiteMed MeLormin: Jus-ne 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 Alterna-ve for MeLormin   While Assuring Quality and Efficacy of Product


Part 2: Step 8 of 10 Promotion

Promotional Strategies

  Adver-sements   Tri-‐Media

  Public Rela-ons   Corporate Social Responsibility, Partnership with

Public/Private Sector(s)

  Marke-ng   Sales Representa-ves

  Health Educa-on Campaigns


ten step marketing plan for ritemed metformin hcl

Health & Medicine