june22011abbott

june22011abbott - Marketing­June 2, 2011 Marketing­June...

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Unformatted text preview: Marketing­June 2, 2011 Marketing­June 2, 2011 Abbott Laboratories Limited Format Format Executive Summary Problem Statement Issues Objectives Consumer Analysis Implications of Consumer Analysis Trade Analysis Competitive Analysis External Analysis (Social/Technological/Economic/Political) Corporate Capabilities (HR/Finance/Operations/Marketing) Alternatives Recommendation Problems & Issues Problems & Issues Main Issue: Kerr is preparing for the launch of Norvir­needs to determine how to formulate a marketing plan. Constraints: Company has mandated achieving 30­40% market share and turning a profit within one year. Illegal to advertise product directly to the end consumer. Underlying Issue: Challenge is not to increase the existing pool of patients, but also must participate in AIDS awareness and prevention activities. Objectives: Kerr would like to move up within the company, so success depends on his performance (congruence with corp and pers obj) Consumer Analysis Consumer Analysis Segments: Patients, Physicians, Specialists, Pharmacists, Patient Advocacy Groups, and Government Private Players. Note: This is a bit different from a traditional segmentation because all have vastly different perspectives. However, all could be our target market and must be considered in terms of who/ where/why/when/how. Needs & Wants Needs & Wants Patients: the needs of this group will be key for shaping the message to the other stakeholder groups. HIV and AIDS Patients are very informed and they gather information from the other key stakeholders in this case. They will use the internet, scan medical journals and speak with all other parties. Patients will only want to take a few pills each day with few side effects, they are also looking for simplicity. Quality of life issues are of paramount importance. Physicians: Limited side effects­they will be influenced by knowledgeable sales reps and the reputation of the company. They also attend seminars, and are influenced by specialists. Specialists: Often involved in clinical trials, and will be influenced by those results. They will also be influenced by the reputation of the company, and the amount of money the company donates to research and development/. Needs & Wants con’t Pharmacists: They are the purchasers of the product­they are interested in efficacy, side effects, drug interactions and dosing requirements. They will often place orders when the reps are actually on a sales call so they will be influenced by knowledgeable sales reps and a company’s reputation. Patient Advocacy Groups: These groups have incredible influence and power in the pharmaceutical world­they relentlessly pursue funding from the government, pharmaceutical companies, and the general public looking for a cure. They are also fierce educators about the disease and new treatments. They will be key in delivering the message about the drug if they believe it to be efficacious. They are influenced by the drug company’s reputation and its commitment to the disease. Government and Private Players: These groups want cost effective drugs and are influenced by side effects, efficacy, and the reputation of the co. Implications Implications Physicians are key because the drug will not be prescribed to the patient without their support. Patient advocacy groups, because of their influence should also be targeted in the marketing communications. Government and insurance agencies must be convinced that Norvir should be on their formulary lists. Pharmacistswill purchase Norvir once physicians start prescribing it­to the focus does not necessarily need to be on them. Target Market Target Market One of the groups should be designated as the key target­and then develop a potential action plan in how to communicate with them. Competition Competition Crixivan­3rd largest co on the world, good reputation and significant financial and marketing resources. Crixivan is highly efficacious and tolerable with limited side effects. It is also priced competitively. Downside is that drug must be administered every 8 hours with food and minimum water. Invirase­developed by La Roche who has a compassionate user program of 1000 patients (10% of market). Limited side effects, but not as effective­and is more expensive. Also needs to be administered every 8 hours. SWOT Analysis SWOT Analysis Strengths: Easier regime to administer, company has many resources world wide, decent reputation. Weaknesses: Side effects are deterrent, competitors are strongly objecting, refrigeration of product could also be deterrent. Opportunities: Other company’s products have strict regime, if the side effects could be mitigated, this product would be a strong one Threats: Other competitors also have a lot of resources, can combat your message. External Analysis External Analysis Social: HIV/AIDS has very powerful lobby groups, very high profile among society and is a hot topic. Technological: Research is strong, company has strong development department Economic: Cost of caring for patients is extremely high, any way to decrease costs will be key. Political: Government health care is under constant scrutiny to decrease costs, and to keep patients out of constant care and at home rather than in hospitals Corporate Capabilities Corporate Capabilities Human Resources: Kerr is a strong leader and has great ideas, the company also has a huge corporate structure world wide, can draw on ideas, and expertise. Finance: Top 20 company, will have finances to put into the project as well as expertise. Operations: Research and Development is well established, as is the operating structure of the company­should be no glitches in delivering the marketing plan Marketing: Strong product, good attribute, should be able to sell to target markets. Alternatives Alternatives Alternatives should focus on marketing communication plans­all other aspects of product are already set (price, product). Key issues are place (where to promote) and promo (what message, to whom) Alternatives include attending the AIDS conference, making donations to AIDS support groups and patient advocacy Alternative Implications Alternative Implications Probably not best to focus on the pharmacists­they will deliver what the doctors and specialists are providing. Need to reach the patients through the internet, specialists through direct selling, and patient advocacy groups through direct interaction at symposiums, conferences etc. Recommendation Recommendation Focus on the patient advocacy groups through attending conferences, make donations to their support programs, continue direct access Focus also on the physicians and specialists, they are the ones who have the power to prescribe­key group Patients themselves should be targeted by flooding the internet with information about the positive aspects of the drug­patients are increasingly doing their own research and can demand treatment from their specialists. Action plan: set out time lines, attendAIDS Conference, determine budgets for donations. Contingency Contingency If efforts do not yield the 30­40% market share, go back to the focus groups and find out what is still the barrier. Look at trends rather then absolute numbers­this may take longer then one year to build awareness, targets may need to be extended ...
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This note was uploaded on 06/08/2011 for the course ECON 1006 taught by Professor Pow during the Fall '11 term at CUNY Baruch.

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