SawLab - SAWYER LABORATORIES During the summer of 1991 the...

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1 SAWYER LABORATORIES During the summer of 1991 the officers of the Sawyer Laboratories Division of Cooke & Cohen, Incorporated were studying the possibility of changing their marketing policies in respect to certain items in the company product line. The focus of the study was the marketing of two products, namely: Desenex, a preparation used in various forms for the prevention and treatment of athlete's foot; and Caldesene, a powder used for the prevention and treatment of diaper rash and similar rashes. With the exception of the Desenex and Caldesene product group, all other items manufactured and marketed by Sawyer Laboratories were pharmaceuticals available to consumers only upon prescription by a physician. Caldesene and Desenex could be purchased without a prescription. The company was contemplating the possibility of adopting a marketing pattern for Caldesene or Desenex or both, during the coming year or at some time in the future, which might differ from the marketing pattern of the prescription pharmaceutical items in the company's product line. A possibility under consideration was that of following a marketing pattern for Caldesene and Desenex similar to those used in marketing proprietary medicines. The Merger The Sawyer Laboratories Division represented the outgrowth of a merger of Sawyer Laboratories, Inc. with Cooke & Cohen, which owned Weitz Laboratories, a pharmaceutical manufacturer. The merger had taken place earlier in 1991. The consolidation of the two operating pharmaceutical companies into the Sawyer Laboratories Division was scheduled to take place in January of 1992. Inasmuch as each of the two companies had operated its own research, manufacturing, and marketing facilities, the consolidation raised a number of problems. Both of the pharmaceutical companies had long product lines. None of the products were competitive with one another. Cadesene and Desenex were both products which had been developed and marketed Weitz Laboratories. The two pharmaceutical companies both maintained national sales forces. The Sawyer company kept a sales force of 185 men in the field and sales force of Weitz Laboratories consisted of 70 salesmen. In the past the promotional duties of the two sales forces had differed in one respect, namely: While the Sawyer sales force sold primarily to the wholesale trade, the Weitz salesmen sold both to wholesalers and directly to the retail trade. The salesmen executed two principal functions. One of these was that of maintaining stocks in the distribution channel by selling efforts at the wholesale level (and at the retail level, as well, for the Weitz salesmen). The other function was that of "detailing" physicians. The detailing function consisted of acquainting doctors with the characteristics of new products in order to convince the doctor to prescribe or use the product.
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