GPO-FED

EXTERNALAnalysis

Pseudo+TripolidineMARKET SIZE & TREND

57,723,26064,809,600

71,055,90077,841,920

33,154,800

34,480,992

35,860,232

0

10,000,000

20,000,000

30,000,000

40,000,000

50,000,000

60,000,000

70,000,000

80,000,000

90,000,000

2004 2005 2006 2007* est2008 est2009 est2010

Pseudoephedrine+Tripolidine (Tab)

TOTAL (30 competitors) BM Pharmacy TO Chemical

Rx Co-Ph Sriprasit Burapa Osoth

GSK Thai Nakorn Pattana Others (23 competitors)

+4%

Pseudo+TripolidineBUYER BEHAVIOR

=Health Provider=

• Hospital: decision make on “price”

• Drug Store: decision make on “margin”: decision make on “brand”

=Health Receiver=

• Who ask for brand: decision make on “brand”

• Who ask for pharm-care: decision rely on “pharmacist”

Pseudo+TripolidineMARKET PRICE

Actifed

Actifed

More than

25 competitors

P(H) = 2 - 5 bath/10’s

P(H) = 35 bath/12’s

P(D) = 46 bath/12’s

P(D) = 15 -22 bath/10’s

D=drug storeH= hospitalPremium Position Standard Position

Pseudo+TripolidineDISTRIBUTION Length & Discount

Trade Discount 45-50%

consumerMfg retailerDistributor

Trade Discount 25-30%consumerMfg retailer

Trade Discount 0%

consumerMfg Mfg’s retailer

Highest Penetration Rate

oLowest Penetration RateService Value Added

oHigh Transaction cost & Sales ForceHigher Margin

Op

po

rtu

nit

y • Pharmacist is a key role to dominate a new brand in early stage of launching with out price cutting

• Mfg’s retail store helps shorten distribution channel which is an exit channel for cost inefficiency product

• There is a big market gap in premium position (only 1 competitor) so value added program will help increase customer perception of premium price

Thre

at

• Price war in hospital segment

• Too many competitors

• A cost efficiency is important for lengthen distribution channel

INTERNALAnalysis

GPO-fedProduct

Actifed

1. Packaging :Size & Shape & Material looks similar to local brand which make product ‘s value equals to

“2 – 5 bath/10’s for hospital&

15 – 22 bath for drug store “

GPO-fedCost & Price & Distribution Length

TradeDiscount

Premium Price

-20%

Hospital

COGS at fully loaded

Expected price

>

Drug Store

Standard Price

-25%

-20%

-25%

TradeDiscount

LOSS

PROFIT

LOSS

COGS at fully loaded

Stre

ngt

h • GPO has Mfg’s shop which helps shorten distribution length which benefits cost inefficient product

• GPO has Mfg’s shop where pharmacist advice and recommendation help dominate new branded product

Wea

knes

s • Cost inefficient

• Distribution length and channel is constrained by a high cost which leads to low product availability and economic of scale

• Looks not different from local brands which lead to low price perception and price cutting game where winner is cost efficient

• New to the market then no brand awareness

PROBLEM: Brand

SOLUTION

1. Lack of brand awareness2. Product choice is over loaded (more than 30 brands)

Push through Pharmacist

PROBLEM: Distribution length constrain

SOLUTION

…………………If position as a local brand……………….3. Price war4. Impossible to expand the market because of loss after “Trade Discount” ...............If position as a premium brand…………...5. Lack of confidence to stock a premium product that has no brand awareness

Step1.Shorten distribution length by sale through Mfg’s retail

Step2.Make confident to sale at premium price by running market test in Mfg’s retail

Step3.Role out (distribute) both UPC&BKK via distributor

PROBLEM: Price War

SOLUTION

6. Look cheap appearance leads to compete with local brand and price war where there are more than 30 competitors

Escape price war and access market gap inpremium position by

• Added value though package design• Pricing as a premium brand

Product

Short run:

- Launch single pack for drug store

- Make more premium looks via re-packaging

Long run:

- Develop new formula

Price

- In between 29 – 32 bath/10’s

Penetration and Channel

- Short run: GPO shop

- Long run: distribute through dealer

Push

- GPO shop’s pharmacist recommendation

- In store promotion

-

Tools

GPO-fedSales Objective

ActifedDistribution Channel

Pseudoephridine + Tripolidine

1x10’s

GPOfed

1x10’s

2008 2009 2010 2011

GPO Shop

Annaul Sales (Total)10,010 16,710 22,810 5,700

GPO Shop

Monthly Sale (Total)834 1,393 1,901 475

GPO Shop

Weekly Sale (Total)209 348 475 119

Everage

Weekly Sales19 32 43 11

Share in the Channal of each

Brand(Actifed:Sulidine:GPOfed)88:12 75:25 56:44 40:35:25

GPO-fedBudget

Actifed1.ซองกระดาษใสย่า 10,000 ซอง มลูคา่ 15,000 บาท

2.POS 11 จดุ มลูคา่ 11,000 บาท

3.Brochure 5,000 ใบ มลูคา่ 50,000 บาท

Budget = 76,000 บาท