Académique Documents
Professionnel Documents
Culture Documents
1.0
2.0
3.0
4.0
5.0
Introduction
Executive Summary
Situation Analysis
3.1
Identification Of The Problem
3.2
Market Analysis
3.3
SWOT Analysis
3.4
Target Market
Marketing Communication Strategy
4.1
Marketing Communication Plan/Objectives
4.2
Marketing Budget
4.3
Schedule for Key Marketing Communication Activities
4.4
Promotional Strategies
4.4.1 Advertising Strategies
4.4.2 Promotion and Public Relations
4.4.3 Sales Force
4.4.4 Comprehensive Support Program
4.5
Product Strategies
4.6
Distribution Strategies
4.7
Pricing Strategies
4.7.1 Potential Customer
4.7.2 Sales Forecast
4.7.3 Return on Investment (ROI)
Conclusion
1.0
INTRODUCTION
Cambridge Science Pharmaceuticals (CSP) was an International health care company with a
focus on developing, manufacturing, and marketing products that treat metabolic disorders,
gastrointestinal diseases, immune deficiencies, as well as other chronic and acute medical
conditions. The company captured over $25 billion in sales in 2007. Barbara Printup is the
senior director of marketing of CSP who is responsible for the most successful product by CSP,
Zimistat. CSP had assigned Printup to be in-charged of the upcoming U.S product launch of
CSPs newest prescription drug, Metabical.
Barbara Printup, Senior Director of marketing for Cambridge Sciences Pharmaceuticals (CSP)
will be the person who is responsible in the product launch of Metabical which scheduled for
January 2009. It was now February 2008, and Printups first order of business was to develop
a viable positioning strategy and associated marketing communications plan for Metabical.
2.0
Executive Summary
Cambridge Science Pharmaceuticals (CSP) came out with the first prescription drug approved
by the FDA specifically for overweight individuals called Metabical. The majority of Metabical
trials participants reached their weight-loss goals by week 12. Although pricing had not been
finalized, CSP estimated the retail price for the drug would be approximately $3 to $5 per day,
with the average course treatment lasting 12 weeks.
In this report, we will conduct an analysis for CSPs product, Metabical starting from the
analysis of the industry. We will then elaborate the issues regarding overweight and obesity in
the United States and analyse the market survey done by the company regarding overweight
issues in order for us to decide which is the best market segmentation that we should target.
The second focus in this report would be the positioning strategy which we will state the point
of parity and point of differences of Metabical and come out with the positioning strategy and
target market.
The third focus will be the the SWOT analysis of the product which we will state the strengths,
weaknesses, opportunities, and threats of Metabical which lead us in deciding which marketing
communication strategy need to be taken next.
Finally, we will discuss on marketing communication strategy which best suit with the product
so that CSP able to communicate well with the target consumer.
To decide the best positioning strategy and marketing communication plan, CSP had spent so
much time and money in R&D and on FDA trials for Metabical. Printup was well aware that in
order to recoup this massive investment, the drug need not only a successful launch, but also
long term, steady demand. If Metabical were not successful with initial consumers, credibility of
the drug would be in question and FDA approval would mean little.
Printup still needed to flesh out the optimal segmentation, targeting and positioning of the drug,
Then she could move on to assessing her current marketing communications strategy and
developing a timeline for the key activities. The case study had led us in analysing and
deciding who was the ideal target consumer? How should each participant in the decisionmaking process to be addressed? How could these participant best be reached? What was the
appropriate message to convey to one of them? What was the role of the support program?
What was the optimal rollout schedule for the key marketing communications activities?
In this report, Printup will provide all recommendations for the successfull marketing
communication strategy and to ensure the long-term steady demand for Metabical.
3.1
3.2
MARKET ANALYSIS
Marketing survey
An extensive market survey had been conducted in 2007 which included 1,000 men
and 1,000 women age ranging from 18 to 70 with BMIs of 25 to 29.9 from various
socioeconomics levels. The objective of the market survey is for CSP to understand the
consumers behaviour and what they actually want.
At first 70% of respondents surveyed were not satisfied with their current weight.35% 0f
them said were actively trying to lose weight but just 15% of them mentioned that were
comfortable using drugs to help their weight-loss goals.
Market Research
Based on statistic on adult population in United States between 1976 and 2000
obviously we can see the percentage of obese and overweight steadily increasing. The
percentage of overweight population who had BMI between 25 and 30 which
categorized in overweight group was 34% in year 2000.while in the same year 25.8% of
U.S. populations categorized as obese and 4.7% into severely obese. Also the
percentage of obesity were rise steadily with age in both gender with the highest
occurrence among men age 65 to 74 and women age of 55 to 64 and with overall more
prevalence in men rather than women. As we can see the percentage of obese had
inversely related with education level and income level. The highest obesity
percentages were in less than $25,000 with 32.5% and level of education less than high
school with 27.4%.
Through this experience and strong need to cater the moderately overweight people,
health care providers saw their potential customers in them who want to lose unhealthy
pounds. Health care providers went ahead to produce the drug and recommend them to
use it besides getting help from diet and exercise schedules. Based on reports which
were obtained from health care providers one of their major concerns about weight-loss
drug was that patients would get back weight when they stopped taking pills.
We try to achieve psychographic segmentation of overweight. According to research
which was done on females, they have verity of aims to lose weight. In age 18 to 30
with high school education and under $40000 income have low self-esteem and
unrealistic expectation to look like a movie star. And in age group between 25 to 40 with
college education and income level $50,000-$80,000 said willing to alter current
behavior to get back to their old physic. While age 35 to 65 with college education plus
and more than $80,000 income mentioned ready to make change to be healthier. In age
group 45 to 65 with some college education and income $40,000 to $60,000 want to
lose weight but if it is easy. In age group 40 to 65 with some college education and
income $30,000-$50,000 they accepted their overweight and they dont want to change
the lifestyle.
Printup also commissioned a study to analyse psychographic segmentation of
overweight individuals. The study revealed that women demonstrated the most distinct
segmentation. Out of five psychographic profiles, we feel that CSP should focus into
two of it segmentation which is as follows:
SEGMENT
I want to be healthier
DESCRIPTION
Want to lose weight to feel
better and live longer.
Knowledgeable about the
importance of nutrition and
exercise. Ready to make a
change.
Focused
on
gold
of
reclaiming former weight.
Motivated and willing to alter
current behaviour.
TYPICAL DEMORGRAGPHIC
PROFILE
Age 35 to 65, college
education plus, household
income $80,000+
To support the above findings, in February 2008 focus group study revealed their
dissatisfaction with current weight-loss options and the desire for a proven and safe
way to drop excess weight. This focus group participants also expressed the desire for
a prescriptionstrength drug with FDA approval and clinical result to back up weightloss claim.
3.3
SWOT ANALYSIS
SWOT Analysis is a Strategic Planning method that is used to evaluate the strengths,
weaknesses, opportunities and threats of a business. It involves monitoring the internal
and external marketing environment.
vii.
viii.
ix.
FDA approval
Safe and effective in achieving
significant weight loss.
Less harmful compared to other
products.
One pill per day
Average course treatment lasting12
weeks
Combination of Calosera and
meditanan created dramatic effect for
weight loss.
Strong and Comprehensive marketing
strategy
Experience marketing and R&D team
Allocate substantial amount of money
in marketing budget
WEAKNESSES
i.
ii.
OPPORTUNITIES
i.
ii.
iii.
iv.
v.
3.3.1
THREATS
i.
ii.
iii.
STRENGTH
CSP believed that its prescription drug, Metabical, is far more superior than any weightloss solution on the market because Metabical would be the first prescription drug
approved by the FDA specifically for overweight individuals (i.e., those with BMI of 25 to
30).
The combination of calosera and meditonan produced dramatic weight loss for
overweight individuals and it is find to be less harmful as compared to other weight loss
drugs. It worked in a low dose formulation, thereby reducing stress on heart or liver
function than other weight loss drugs tended to produce.
Metabical also contained a controlled release feature that required only one pill to be
taken per day with average course of treatment lasting 12 weeks. It also helps in
changing people behavior to a healthier eating habits.
CSP is an international company with a strong and experienced marketing and R&D
team. CSP has developed a comprehensive marketing strategies and have allocated
substantial amount of money in marketing budget.
3.3.2
WEAKNESSES
Despite of its strength, Metabical has few negative side effects associated with excess
fat and calories in the diet. It occurs when users consumed high level of fat and
calories. These side effects were similar to the gastrointestinal discomfort caused by
Alli, only less severe.
Metabicals formulation however is not very effective in helping individuals with BMIs of
30 or greater and was, therefore, not recommended for this group.
3.3.3
OPPORTUNIES
Excess weight is considered a public health crisis in the U.S and approximately 65% of
the entire adult population categorized as overweight, obese or severely obese. With
these large population, it creates an even bigger market share for Metabical. In
addition, no prescription drug option specifically for the overweight segment (BMI of 25
to 30) were available in 2008 except for drug Alli had been approved by the FDA for
weight loss used.
Meaning there will be no strong competitor for Metabical for the time being.
From the market survey and market research conducted by CSP, it showed high
indication of people actively wanting to lose weight and live a healthy life style with
comprehensive support program will enable individuals to achieve better results than
they would from the pill alone. In addition, the support program would teach lifestyle
skills for healthy weight maintenance after the initial weight loss was achieved.
3.3.4
THREAT
The drug industry faced several safety concerns with regard to weight-loss drugs and
had been accused of deceptive marketing claims that dempened enthusiasm for the
products. This deceptive marketing claim had damaged the industry credibility and to
regain consumers confidence would be another big challenge to the drug industries.
The rising in the numbers of dietary supplements and herbal products had worsened
the situation due to its unregulated condition by the FDA and the products negative side
effect such as sudden cardiac death and other serous health risks had reduse people
confidence in weight loss drugs.
3.4
TARGET MARKET
In developing a viable positioning strategy in order to determine the right target market,
CSP had conducted an extensive market survey of overweight individuals in the year
2007. Under the market analysis, Barbara Printup also carried out a study to analyze
psychographic segmentation of the overweight individuals and they found out that
women demonstrated the most distinct segmentation.
Based on these findings from the market survey, market research and the
psychographic segmentation, we suggest that the target market for Metabical are as the
following:
1)
2)
3)
4)
5)
to lose weight
6) Willing to change current behavior and to live healthy lifestyle
4.0
$ 1,000,000
$ 12,000,000
-------------------$ 13,000,000
PROMOTION
Development of Support Program
Lunch & Learn Seminars / Other Promo
Production of Support Program
Training / Promotion Materials
Direct Mailing To Health Care Providers
Total Promotion
$
200,000
$
600,000
$ 2,000,000
$
500,000
$
200,000
-------------------$ 3,500,000
PUBLIC RELATIONS
$ 3,500,000
$
800,000
-------------------$ 4,300,000
$
600,000
$ 1,491,000
$
255,000
TOTAL BUDGET
$ 23,146,000
It is also very important for the marketing communication strategy to have the timeline for the
key marketing activities and we proposed the optimal roll out schedule for key marketing
communications activities to be as follows:
Table 3 : Schedule of Marketing Communication Activities
TIME LINE
Advertising
To Create
Brand
Awarenes &
Knowledge
Advertising
Branding
Image
Promotion
& Public
Relation
Product
Launch
Sales Force
Road show
On Clinical
Information
by sales
Pharmacies
Team
Continue
s
Support
Program