Pharma ProjectStrategic marketing Management

PHARMA PROJECT

Submitted To:Faisal Qureshi

Submitted By:NameRegistration NumberEmail IDContact Number

M.Usman [email protected]

Ubaid [email protected]

Ayaz ur [email protected]

Shoaib [email protected]

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


Agree20

Strongly agree4

Question 7 :

Strongly disagree2

Disagree5


Agree10

Strongly agree10

Question 8 :Strongly disagree2

Disagree0


Agree21

Strongly agree4

Question 9 Strongly disagree1

Disagree3


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

Pharma ProjectStrategic marketing Management

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