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
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