10 Step Marketing Plan for RiteMed MetforminMikhail G. Tenazas

Positioning to the Primary Target Market

Part 1: Steps 1 to 5

1.Target Market

2.Needs, Wants, Expectations

3.Choices (Competitors)

4.Opportunity (Gap)

5.Market Size (3 Cs)

Primary target market

Demographics

People afflicted with Diabetes Mellitus Type II

Belonging to low-income bracket

Spans/covers all ages, sexes, genders

Primary target marketLifestyle

Blue-collar workers, unemployed, underemployed

People with unhealthy lifestyles

Poor eating habits

Intake of fatty foods

Poor exercise habits

Primary target market

Behavior

FOODWATER

SHELTERHEALTH

GOOD HEALTH ENABLES ONE TO ACHIEVE SELF-

DEVELOPMENTFEELING GOOD

ABOUT ONESELF WHEN ONE IS DISEASE-FREE

Primary target market

2. Needs, Wants, ExpectationsTarget market

Needs: physiological (health), self-esteem, self-actualization

Wants: affordability, good quality, reliability

Expectations: improvement in symptoms, better health

3a. RiteMed Metforminhas many competitorsDirect:

Natrapharm GlaxoSmithKlineZuellig BoieBrittonHealth SaverLittmanMetro DrugNextChemPharma NutriaSanofi-AventisWinthrop

3a. RiteMed Metforminhas many competitorsIndirect:

Diet modification, fitness gyms, self-prescription, non-compliance

Variables:

Age, price, packaging, frequency and convenience of use, availability, brand popularity, doctor’s prescription

3b. Competitive Position Map

2 most critical variables:

Price

Brand popularity

RiteMed: Generic MedicinePrice/

Positioning Matrix

Relatively

UnknownPopular

Relatively

Popular

Very Popular

High Price

Low Price

ZuelliZuelligg

UnilaUnilabb

MetroMetrodrugdrug

Sanofi-Sanofi-AventiAventi

ss

NatraphaNatrapharmrm

PharmaPharma-nutria-nutria

BoieBoie

BrittoBrittonn

WinthrWinthropop

LittmanLittman

4. RiteMed’s Metformin is positioned as an Effective yet Affordable Generic MedicineRiteMed has the only Metformin (Anti-DM drug) that is…

✓Generic and affordable

✓Effective and of top quality

✓Readily found in the market

✓Supported by United Laboratories (RiteMed being a subsidiary)

✓Unique in its position

Part 2: Steps 6-10

6. Product

7. Price

8. Promo

9. Place

10. Generic Winning Strategy Mix

5. Market Size

5a. Based on competitor data

5a. Based on competitor data, market size is P8.036 B

GlaxoSmithKline has P 1.125 billion

GSK has a market share of around 14%

Then total market size is 1.125M/0.14 = P8.036 B

5b. Based on company data, where RiteMed share is 2% market size is P5.29 BRiteMed Philippines data:

RiteMed sales is P105 Million

RiteMed has a market share of around 2%

Then total TB drug market is P105 m/0.02 = P 5.29 Billion

5a. Based on customer data, market size isP1.167 B

Prevalence of diabetes = 5.037 M

Cost of treatment:

P3.09 per tab x 2 daily x 365 = P2,257.16

Total cost = 5.037 x 2,257.16 = P11.4 B

5. Conclude that market size is P8.0 B

Competitor data = P 8.036 B

P7,882 x 150,000 = P 5.29 B

Market size = P 11.4 B

6a. Photo

6b. Product DescriptionContents: Metformin HCl

Indications: Type 2 diabetes inadequately controlled by diet and exercise alone.

Dosage: Initially 500 mg every 12 hr, dose may be gradualy increased to a max of 2250 mg daily.

Administration: Should be taken with food

Contraindications: Renal impairment, CHF requiring pharmacologic treatment, acute or chronic metabolic acidosis

Special Precautions: Elderly, hepatic and renal impairment

Adverse Drug Reactions: Anorexia, nausea, vomiting, diarrhea, lactic acidosis, decreased vit B12 absorption

Preparation: In 500 mg and 850 mg tablets

7. Price

RiteMed Metformin

most affordable Metformin (500 mg), priced at P 3.09 per tablet.

Main market strategy: Price leader

providing a cheap alternative for Metformin while assuring quality and efficacy of drugs

Price Comparison

8a. Promotion

Present Strategies

Advertising: Television and Radio

Public Relations: Corporate Social Responsibility

Direct Marketing: Sales Representatives

8a. Promotion

8a. Promotion

SALES REPRESENTATIVES

8a. Promotion

CORPORATE SOCIAL RESPONSIBILITY

Personal Suggestions

Advertising:

Advertise heavily on TV, print, and radio

Focus on product’s affordability while emphasizing quality

Sponsorship of events (seminars, workshops, conferences)

Public Relations

Emphasis on corporate social responsibility

Sponsorship of charity programs

Involvement in medical missions, giving away free drugs

Public Relations

Partnership with NGOs

Partnership with government programs

Personal selling

Sales reps

Massive marketing push

8b. Competitor PromoLeading Pharmaceuticals with no Metformin products:

Pfizer Inc

Wyeth Philippines

AstraZeneca

Bristol-Myers Squib

Novartis

Abott Lab

Roche Philippines

8b. Competitor PromoBranded Medicine Competitors:

Natrapharm

Boie

GlaxoSmithKline

Britton

Health Saver

Littman

Metro Drug

NextChem

Pharma Nutria

Sanofi-Aventis

Winthrop

Zuellig

Less reliance on broadcast media adsHeavily reliant on:Sales RepresentativesProduct SamplesSponsorship of events, conferences, etc.

8b. Competitor Promo

Generic Medicine Competitors:

8b. Competitor Promo

Generic Medicine Competitors:

9. Place

RiteMed is available in all Major Pharmacies Nationwide

10. Generic Winning StrategyLow cost products but safe and effective

Affordable generic medicines of top quality

Summary

5 steps for Part 1

1. RiteMed target market are diabetic patients in the low-income bracket

2. Who want to be healthy

3. Can choose RiteMed, etc.

4. Gap: absence of affordable, effective generic drugs

5. Market size is P 8.0 Billion. RiteMed niche is P107 million

Summary5 Steps for Part 2

Product: RiteMed Metformin

Price: 20-80% lower-priced than competitors; price leader

Promo: uses TV, radio, print, sales reps

Place: distributed nationwide in all leading pharmacies

Generic winning strategy mix: safe, effective, affordable generic drugs