Nimalox re-branding marketing plan

NIMALOX MARKETING PLAN 1MBA Cairo University

Nimalox is a non steroidal anti inflammatory drug with

analgesic and antipyretic properties and cox-2

selective inhibition

Nimalox used for treatment of osteoarthritis , acute

pain and primary dysmenorrheal in adolescent and

adult above 12 years old . it is characterized by fast

onset of action .it has many advantages such as

1- has superior gastrointestinal safety as compared to

other NSAIDs


• And Nimalox multifactorial mode of action on inflammatory

raceme , also it has proven benefits in the treatment of acute

pain , painful osteoarthritis and primary dysmenorrheal . the

product price competitively in the market place higher than

generic competition , the target market is young executive ,

ages 21 to 40 , dentists , pharmacists , it focused to market

the Nimalox to the age range of 50 to 75 , it will be

competitive advantage from other product through its use of

new distribution channels and social media awareness


• The size of the global pharmaceutical industry is estimated to be at

US$ 550 billion in 2004 as per the latest IMS estimates and has grown

at 7%. The growth is driven by a robust drug development pipeline,

ageing population and ongoing demand for innovative therapies. North

America has contributed nearly 45% of the global pharmaceutical

sales. European Union accounts for around 26% while Japan accounts

for around 11%. Of the other major pharmaceutical markets, China has

shown a consistent performance year after year growing by 28% to

US$ 10 billion. (Source: IMS)


Nimesulide was the NSAID with most DDDs **billed from

January 2006 to March 2007, with an average 22.3% market

share (203.7 DDDs/1000patients/month). Utilization dropped

suddenly between April and Jun Nimesulide has been

associated with increased risk of hepatotoxicity. This

prompted regulatory action by the European Medicines

Agency.

It is available in a variety of forms: tablets, powder for

dissolution in water, suppositories, mouth dissolving tablets

and topical gel NIMALOX MARKETING PLAN 8MBA Cairo University

• The main competitors are Sulide® Nilsid ®

• **The WHO's definition is: "The DDD is the assumed average maintenance dose per day for a drug used for its main indication in adults."[1]


http://en.wikipedia.org/wiki/Maintenance_dose

http://en.wikipedia.org/wiki/Defined_daily_dose

Customers typically purchase pain relievers at supermarkets, pharmacies. Individuals

may buy OTC pain relievers after surgery or to help eliminate pain after they have used

their prescription pain killers. A number of issues play a role in consumers selection of

which OTC pain reliever to use. Some consumers look for lowest price, in which case

most generic forms of pain relievers, such as nimalox, dispersal. Other consumers look

for the absence of certain side effects such as gastrointestinal bleeding or effects on

one’s liver or kidney. Few OTC pain relievers can be taken during pregnancy, whereas

others cannot be used in conjunction with certain prescription drugs. When consumers

have multiple symptoms, such as headache with congestion, they often choose a

medication that will solve all of their problems


Products such as Brufen cold or Panadol sinus serve to

eliminate headache and clear congestion . AS an added

benefit , the user doesn’t need to be concerned with

possible side effects of mixing medications. Once a

consumer find a pain reliever that works well, they tend

to buy only this brand in the future. Word of mouth also

plays major role in selecting OTC pain killers and so do

the pharmacist opinion.


Rationale of non customers

Aspirin and Ibuprofen should not be taken if you are

taking blood pressure medications like ACE inhibitors

and/or beta-blockers. Some people have allergic reaction

to aspirin such as asthmatics, which can cause wheezing,

hives, facial swelling and/or shock. Other individuals have

a holistic approach to medicine and prefer not to take any

sort of medication. Because of these reasons, many

individuals experiment with alternative means of pain

relief.


imesulide has superior gastrointestinal safety as compared to other

NSAIDs.

Its multifactorial mode of action gives it a unique and broad action

on inflammatory processes.

It has proven benefits in the treatment of Acute (short term) pain,

Painful osteoarthritis (Swelling in the joints) and Primary

dysmenorrheal ( Period Pains)

Fast analgesic & antipyretic effect than other NSAIDs in addition to

anti-inflammatory effect.

Twice daily.

Available in 3 forms for patient compliance.

Palatable taste for granules.


Market analysis and market growth

• 2) Market Share : 2013

NIMALOX MARKETING PLAN 17

Market Segment

Our Product Main Competitors

Value Gr. Value M. Sh. Gr. Name Value M.Sh. Gr. Name Value M.Sh. Gr.

986,709,592 10.8 2,266,600 Sach : 917,980

Tab : 973,404

Supp : 375,216

0.3

32.3 %

34.4 %

13.2%

-46

10.2

-20.6

-14.3

Sulid

Tab

Supp

11,992,640

7,521,536

4,471,104

1.5

50.8 %

30.2 %

-43.1

-20.2

-0.6

Nilsid

Sach

Tab Supp

1,252,275

369,546

515,925

366,804

0.3

13.7 %

19.1 %

13.6 %

-62.2

-5.3

-37.7

-24.9

MBA Cairo University

UnitsGr.

UnitsM. Sh.

Gr. Name UnitsM.Sh.

Gr. Name Units M.Sh.

114,770,203

5.3 354,171 Sach : 183,479 Tab : 108,156 Supp : 62,536

0.4

39.2 %

23.1 %

13.4%

-46

10.2

-20.6

-14.3

Sulid

Tab Supp

1,242,667

683,776

558,888

1.5

40 %

32.7 %

-50.2

-20.2

-0.6

Nilsid Sach

Tab Supp

180,050

61,591

57,325

61,134

0.4

15.3 %

14.2 %

15.2 %


As in the most industries, technological

advancements have affected consumer activity

in a number of ways. The internet has created

an abundance of information, not all of which

is reliable. Consumers have easy access to

information, much of which is promotional

material presented in a manner to appear

unbiased.NIMALOX MARKETING PLAN 21MBA Cairo University

In addition to the impact on consumer, technological advances also offer

a number of opportunities and challenges pertaining to manufacturing,

distribution, and promotional activity. Technology generates more

extensive research, greater accuracy in manufacturing, more effective

methods for tracking issues, and faster processes for development. with

regard to distribution, technology has provided opportunities for

environmentally friendly packaging whole increasing safety mechanisms

to prevent tampering. Potential benefits include inventory control ,

counterfeit deterrence, patient protection, and prompt communications

relating recalls


Potential benefits include inventory control, counterfeit

deterrence, patient protection, and prompt communications

relating recalls.

The Egyptian drug authority (EDA) has developed a timeline in

which drugs that are more likely to be duplicated by counterfeiters

will be serialized sooner than others. The adoption of FRID(radio

frequency identification) technology affects drug manufacturers

and should be considered when developing packaging


Nimesulide has been associated with increased risk of

hepatotoxicity. This prompted regulatory action by the

European Medicines Agency. The following measures were

applied in 2011: change in product approved indications

(January), a ‘‘dear doctor’’ letter (March), and removal of

packages for therapies longer than 15 days (up to June) and

withdrawal of suspension for children less than 12 years


Fast analgesic & antipyretic effect than other

NSAIDs in addition to anti-inflammatory effect.

Higher GIT tolerability

Twice daily.

Available in 3 forms for patient compliance.

Palatable taste for granules.


Not safe for children below 12 years

Cautions related to Hepatic-toxicity .

Limited worldwide experience


Established Concept of sachets use via Catafast

Higher incidence of Fevers during Influenza season &

need of potent antipyretics

Temporary shortage of sulide due to problems in the

production line


MOH history of suspension withdrawal which create

negative image at doctors mind.

Crowded market & tough competition.


• The market of analgesics is crowded with heavy competition either direct or indirect

• Direct competition:• Nilsid Pharaonia company • Limited sales team activity, cheaper price, less market

share • Sulide Hikma Company • Highly active sales team, known product by doctors,

higher market Share but higher price


Competition

• Indirect competition • Catafast : is the market leader as Sachet produced by a

multinational company ( Novarties )• Different active ingredients: diclofenac potassium • Heavy promotion and stable market share • Voltaren : by Novartis as tablets but with a higher price • Service offering • Special Discounts for large orders • Providing free medical brochures , gimmicks with

adequate quantity to cover doctors and remind them with Nimalox by name


Mission & Objectives• Marketing Mission & objectives need to be seen as

part of a hierarchy of Company Mission & Vision in the sense that they are shaped and informed by the corporate objectives. A corporate objective influences a marketing objective, which in turn shapes the marketing strategies and marketing tactics employed:


Sigma was founded on four key values: “Vision, Leadership , Teamwork and Devotion”

• Sigma (Mission & Vision )• Sigma envisions itself to become one of the top

generic pharmaceutical companies in the Middle East.

• The mission of Sigma is to produce quality medicines to improve human health. We believe that access to high quality, yet affordable medicine is essential in improving healthcare.

• Mission : to provide healthcare providers and patients with pharmaceutical products of premium quality products and to safely , rapidly relieve patients suffering with pain.


Marketing Objectives

• Objective: by the end of this year we aim to sell about 410, 000 units

• making annual revenue of about 2,650,000 LE with about 22% growth rate. Also , to increase customer / patients retention by 20%

Setting goals / objectives are easy but achieving them aren’t, so we apply the SMART acronym on our objective


Re-branding the Nimalox : by using new improved formulas and fashionable logos, New Packaging design , then you will win and attract new customers

Improve Product Awareness: To launch a marketing campaign targeting dentists and pharmacists and health providers, who were soon all receiving promotional materials: by using new informative brochures for highlighting on uses for different forms, flyers, free medical samples, invitations to talks on our website , and visits from pharma reps.

• - Our goal is to position the Nimalox as convenient prescription strength , OTC market , so the consumer will be satisfied convenient medication without need of doctors directions SO WE ‘ll build the name with OTC choices for pharmacists among NSAIDS ( achieving 100,000 Rx / year (Prescription) )

- increasing Nimalox market share in the market of anti-rheumatics

Increase Sales - to maximize the sales effect.


Financial Objectives

• To achieve a gross profit margin of £ 2,400,000 before the end of the financial year. To increase net profit by 23% each year for the first five years of operation. To achieve a 19% return on the capital invested by the end of the first year of operation. To increase the size of operation from £ 100,000 in the first year to £ 200,000 in the next.


TARGET segmentation

1- Nimalox target segmentation consist of men and women

above 12 years old whose work in an office environment

segments which are in colleges ( the teenagers)

2- people how has osteoarthritis

primarydysmenorrhea

in adolescents and adults who has gastric pain or disease as it

has the superior gastrointestinal safety compared to other

NSAIDs

3-people who has acute headache as it has proven benefits in

treatment of acute or short term pain NIMALOX MARKETING PLAN 37MBA Cairo University

Target market

1-pharmacists

2-dentists

3- Orthopedics


Positioning

Nimalox the faster and powerful NSAIDs for pain and fever ,

as there are several features that differentiate Nimalox from

other NSAIDs ,

1-Nimalox has proven benefits in the treatment of acute

pain , painful osteoarthritis , and primary dysmenorrheal

2- Nimalox is multifactorial mode of action with unique

broad action on inflammatory process

3- Nimalox has superior gastrointestinal safety as compared

to other NSAIDsNIMALOX MARKETING PLAN 39MBA Cairo University

Marketing Mix

ProductProduct

Product usage Acute pain reliever medication The treatment of dysmenorrheal pain Anti-inflammatory Does not affect the stomach The fast-acting in comparable with other products Product Design Attractive design of the pack Standard specifications Pharmaceuticals


Pricing

to achieve the following Attract new customers gain market share Penetration priceCompetitor pricing Compared with the prices of competitors


Pricing

Tablets Suppository sachets

nimalox 9 LE 6 LE 5 le

Nilsed 9 LE 6.5 LE 6LE

Sulid 11 LE 8 LE N/A


Promotion

Introduction stage/Gain awarenessPharmacy campaigns with special offers Sales promotions Free medical samples for targeted doctorsMail advertisingDirect mail doctorssocial media instegram , twitter, facebook, pinterest ,blogs articles, and

google+


Distribution

Intensive distribution strategy / permanent availability of Nimalox

Using the distribution agents Awareness of Doctors Pharmacies in all Egypt and especially middle-income area


4.0- Financials

4.1 Break-Even Analysis 4.2 Sales Forecast 4.3 Expenses Forecast 4.4 Contribution Margin

4.1 - Break-Even Analysis

•The break-even level or break-even point (BEP) represents the sales amount—in either unit or revenue terms—that is required to cover total costs (both fixed and variable)

•Profit at break-even is zero

•The purpose of break-even analysis is to provide a rough indicator of the earnings impact of a marketing activity

MBA Cairo University 47NIMALOX MARKETING PLAN

In the Linear Cost-Volume-Profit Analysis model (where marginal costs and marginal revenues are constant, among other assumptions), the break-even point (BEP) (in terms of Unit Sales (X)) can be directly computed in terms of Total Revenue (TR) and Total Costs (TC) as:

TR = TCP * X = TFC + V + X(P * X) – (V * X) = TFC(P – V) * X = TFCX = TFC / (P – V)

where:TFC is Total Fixed Costs,P is Unit Sale Price, andV is Unit Variable Cost.


Break-Even Analysis

Monthly Units Break-Even 33,000 units

Monthly Revenue Break-Even (33,000 units x £ 3 cost per unit)

£99,000 (EGP pounds)

We have the following financial objectives : √ To achieve a gross profit margin of £ 2,400,000 before the end of the financial year.(100,000 units monthly x 12 months x £ 2 gross profit margin per unit)

√ To increase net profit by 23% each year for the first five years of operation.

√ To achieve a 19% return on the capital invested by the end of the first year of operation.

√ To increase the size of operation from £ 100,000 in the first year to £ 200,000 in the next.MBA Cairo University 49NIMALOX MARKETING PLAN

* The first year budget is £ 100,000:

(The production & operations budget is £ 37,000 + The marketing budget is £ 63,000)* The production budget (£ 1.1 per unit) includes: Material: 0.62 piasters per unit Labor : 0.27 piasters per unit Utilities : 0.09 piasters per unit Others : 0.12 piasters per unit

* The marketing budget (£ 1.9 per unit) includes:Samples : 0.14 piasters per unitBrochure : 0.02 piasters per unitGimmicks : 0.78 piasters per unitInternet Advertising : 0.05 piasters per unitNewspapers Advertising : 0.14 piasters per unitTV Advertising : 0.61 piasters per unitPublic relations : 0.16 piasters per unitMBA Cairo University 50NIMALOX MARKETING PLAN

4.2 – Sales Forecast

First

FY 2015 FY 2016 FY 2017 FY 2018 FY 2019

Sold Units 1,200,000 1,440,000 1,728,000 1,980,000 2,176,000

Total Revenue

6,000,000 7,200,000 8,640,000 9,900,000 10,880,000

Gross Profit Margin

2,400,000 2,880,000 3,455,000 3,960,000 4,338,000

Actual 2013 Actual 2014

Sold Units 660,000 595,000Total Revenue 3,300,000 2,975,000

Gross Profit Margin 1,320,000 1,190,000

Second


4.3 - Expenses Forecast

Production & Operations Expenses Budget + Marketing Expenses Budget

FY 2015 FY 2016 FY 2017 FY 2018 FY 2019

Materials £15,000 £16,500 £17,200 £18,100 £19,200

Labor £27,000 £32,000 £37,000 £42,000 £45,000

Utilities £9,000 £10,000 £11,000 £12,000 £13,000

Samples £14,000 £15,200 £16,240 £17,600 £18,150

Brochure £2,000 £2,100 £2,200 £2,300 £2,400

Gimmicks £78,000 £90,000 £102,000 £113,000 £127,000

Internet Advt. £5,000 £5,500 £6,000 £6,500 £7,000

Print Advt. £14,000 £15,200 £16,240 £17,600 £18,150

TV Advert. £61,000 £72,500 £82,800 £96,000 £104,000

Others £16,000 £16,500 £17,200 £18,100 £19,050MBA Cairo University 52NIMALOX MARKETING PLAN

4.4 - Contribution margin

•Contribution margin, or pounds contribution per unit, is the selling price per unit minus the variable cost per unit. •Contribution margin represents the portion of sales revenue that is not consumed by variable costs and so contributes to the coverage of fixed costs.


The Unit Contribution Margin (C) is Unit Revenue (Price, P) minus Unit Variable Cost (V):

C = P – V

The Contribution Margin Ratio is the percentage of Contribution over Total Revenue, which can be calculated from the unit contribution over unit price or total contribution over Total Revenue:


• controls : the marketing plan is structured to enable

Nimalox to achieve the strategic goals it has set for

itself , in terms of increasing overall revenue as a result

of differentiating Nimalox from the competition . the

marketing team will ensure that the plan is

implemented to the best of its ability and with the

highest levels of efficiency and accuracy .

.


• implementation : the plan will be altered or

manipulated in order to react with external

changes to the environment .

results will be evaluated by the end of each

quarter at the regular sales review meeting .


• contingency planning : contingency plan have been made for the

following unexpected developments : -shortage of marketing

budget supply : in this case we will concentrate on investing

doctors trust on nimalox and its superior action with their patients

( concentrate more on sales team )

- the entry into the market of a competitive product :

differentiation would continue to be the strategic approach with

the development of added value and benefits


Nimalox re-branding marketing plan

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