Marketing Plan For Launching New Product
Marketing Plan For Launching New Product
Marketing Plan For Launching New Product
Market description
Currently total market size of pharmaceutical product is 12 billion and the share of Nepali companies in the market is 35 % with 45 manufactures operating and (5 18) in the pipeline. With an annual growth rate of 19 %, this sector is one of the fastest growing industries. This sector is contributing around 12 billion to nations economy of which domestic industry accounts for approximately 4 billion. This sector has become strong and stable in various aspects . Report of 2006: The study shows the consumption of allopathic drugs in the fiscal year 2061/62 (2004/05) has been Rs. 10659 millions. The annual increment of allopathic drugs consumption has been 16.1%..
9% 32% 59%
Total consumption and annual increment of allopathic drugs Year 1999/2000 Drug consumption 5907.00 % Growth 25 % 32 %
2000/2005 10659.00 Quantification of drug, RDL/DDA From the data 2000 to 2005: The drug consumption has been increased by 80 % The domestic industries share has been increased by 25 %
Pharma industries have been a powerful and dynamic industry in past 10 years growing when other industries have taken down turns. From the market trend of past few years we can see that market share of domestic industries is increasing in terms of sale and replacing Indian and some Multinational Companies (MNCs). This reflects a wide scope of growth and development of the local pharmaceutical industry in Nepal. Moreover the increasing awareness among general public regarding health, diseases and the domestic production will certainly help this sector to grow faster.
NPL is second largest Pharmaceutical Company of Nepal comparing its annual turnover. It governs the 12% of the total domestic pharmaceutical market with the total annual turnover of 500 million rupees. It is growing with the approximate rate of 20 % annually.
% G r o w t h
Fiscal year
Company profile:
NPL is a pharmaceutical company which was registered in department of industry His Majestys Government (HMG) on 27th Jestha 2042 and had started its operation from 28th Poush 2043. Its plant is located in Jeetpur, Birgunj and it has its marketing office in Pulchowk, Kathmandu. With its motto Quality in the service of millions, in a short span of 26 years it has carved out a significant position in the Nepalese pharmaceutical industry. NPL has a team of competent management and technical professionals and a group of dedicated members at all levels who have been working together as a highly motivated team to create an outstanding record of success and growth in the Nepalese pharmaceutical industry. Its a World Health Organization (WHO) Good Manufacturing Practice (GMP) certified company that has a separate Research and Development(R & D) department, production department, quality control (QC) department, quality assurance department, market planning department and marketing department that works in coordination form an introduction level of product to its nourishment.
Due to its significant achievement in work system and standardization NPL is the only domestic pharmaceutical company that has been awarded with FNCCI National excellence award for three consecutive years since 2059 to 2062 and recently been awarded with FNCCI Service excellence award in the year 2067. NPL has also been honored with NICCI excellence award 2003 by Nepalese chamber of commerce and industry.
Technological advancement: NPL is the first company to collaborate with academia for the development of research activities in NPL, NPL has collaborated with Kathmandu University school of science for conducting bioavailability and bioequivalence testing of medicine testing of medicine, NPL has also expanded its QC plant with the name of Nepal Research Foundation in the year 2066 basically for the development of novel drug delivery system and research activities. NPL holds the pioneer ship to manufacture cardiovascular, psychotropic, anti-diabetic products in Nepal .It is also the first company to manufacture veterinary medicines. There are different divisions within the company. Divisions of NPL Division I Division II Lapen DIV Vet DIV Deals with high value molecules Primary care products Sophisticated molecule Veterinary products Molecules that requires doctor prescriptions Me too ( push strategy ) Cardiovascular, diabetic, psychotropic Vet
Future plans: NPL is constantly on a move to improve, grow and serve better. It plans to launch many useful and innovative health care products in the days ahead. It is planning to launch sterile preparations, anti cancer drugs and it plans to grow in the field of biopharmaceuticals as well.
NPL has been discharging its corporate social responsibilities within its capacity by helping in various health camps being organized. It has its quarterly publication with the name of The Himalayan Health(THT) and Sangrila Janaswasthya(SJS) and distributes throughout the health post and chemist outlets to disseminate health related information to general public through which it also handle public queries regarding disease and the treatment.
Product Basket: Today NPLs product basket has number of medicines more than 200 in its product basket ranging from, various therapeutic categories in different dosage forms. Therapeutic Categories Anti allergic Anti diabetic Anti infective Cardio vascular Dermatological Gastrointestinal Gynecological Hematinic Musculoskeletal Nutritional supplement Psychotropic Respiratory Vitamins Dental Products Dosage forms Tablets Dispersible tablets Capsules Dry syrup Syrups Suspensions Modified Release Pediatric drops Cream Ointments Gels
NPL is a Brand leader in following listed drugs : 1. Amlold cardiovascular 2. CTZ anti allergic 3. Brucet analagesic and antipyretic 4. Vital Vitamin supplement 5. Formin diabetic Range 6. Kefix and Azith anti - infective
Product review
OSAMAX (Alendronate Sodium) is a Biphosphonate drug used for osteoporosis and various other bone resorptions. Biphosphonate bind to the hydroxyapatite found in bone that acts as a specific inhibitor of osteoclast mediated bone resorption.
Composition Each uncoated tablet contains: Sodium Alendronate BP equivalent to Alendronic Acid 70mg
Osteoporosis: Osteoporosis is a condition characterized by a decrease in the density of bone, decreasing its strength and resulting in fragile bones. Osteoporosis literally leads to abnormally porous bone that is compressible, like a sponge. This disorder of the skeleton weakens the bone and results in frequent fractures (breaks) in the bones. Bones that are affected by osteoporosis can break (fracture) with relatively minor injury that normally would not cause a bone to fracture. The fracture can be either in the form of cracking (as in a hip fracture) or collapsing (as in a compression fracture of the vertebrae of the spine). The spine, hips, ribs, and wrists are common areas of bone fractures from osteoporosis although osteoporosis-related fractures can occur in almost any skeletal bone. Throughout adulthood living bone renews itself by breaking down old bone and replacing it with new. Osteoclasts resorb portions of old bone and osteoblasts follow to form an organic matrix of minerals that become new bone. Of course, there are many other chemical changes required to sustain this cycle (e.g. hormones). Osteoporosis occurs when the balance of the cycle is upset causing bone to break down faster than it can be replaced by new bone. Over time, this can seriously affect the structural integrity of bone. Indication and Dosage Regimen OSTEOPOROSIS GLUCOCORTICOID INDUCED OSTEOPOROSIS Men ( adults ) PO 35 mg once PO 70 mg once weekly weekly ( for post
Treatment Prevention PO 10 mg once daily PO 70 mg PO 35 mg weekly weekly Mode administration of Onset of action Peak action
1 months Oral
3- 6 months
Clinical data Treatment of osteoporosis with Sodium Alendronate has demonstrated normalization of the rate of bone turnover, significance increase in BMD (Bone mineral Density) of the spine, hip Wrist and total body and significant reduction in the risk of vertebral (Spine Fractures), wrist fractures and all the non vertebral fractures. In the women with higher risk of fractures treatment with Sodium Alendronate resulted in approximately 50 % reduction in the spine, hip and wrist compared with the control group taking placebos plus calcium and vitamin D. Osamax is an anti-osteoporotic drug given for the treatment of osteoporosis. Adverse Effect: Ulcer and Gastritis
Competitive Review:
The major competitors for Osamax are the existing brand of Sodium Alendronate Product name Company MRP /Strip Packaging
4s * 10 10s*10 4s * 10
OSAMAX
70 mg
192
4s * 6
Major activities of the competitors Brand name RESTOFOS Major Promotional activities Indication : For the treatment of osteoporosis Personnel need fulfillment by the company to develop rapport with the customers. Covers the major hospitals and quantified service is on specific department of hospital. Sponsor in different seminars, stall placement at seminars. Trust of prescriber on MNC brand, R & D investment high for Quality Strong at cardiovascular products.
OSTEOFOS
Brand value of the product Cipla Company Trust of the prescribers on multinational brand. Latest research on the product research is also provided. Reimbursement of travel expenses, hotel stay of doctors free samples. Sponsor in different Continuous Medical Education (CMEs), seminars, stall placement at seminars. Frequency of Sales After Service (SAS) is very high among Indian companies.
FOSSIL
They have a very few brand to focus. (Unique product in their product basket which the other company doesnt have. New company aggressive marketing. Product wise customer focus.
Product positioning and placement: RESTOFOS and OSTEOFOS being the multinational brand, its main positioning is in the mind of the customers as a quality product. Restofos and Osteofos take major sales from the consultant doctors who have greater number of patients. Fossil being first national product from the newly introduced company spend usually on specific product promotion since they have few product to focus on.
Fig : 01
Factory
Corporate office
Headquarter Distributors
Headquarter Distributors
Headquarter Distributors
Headquarter Distributors
Retailers
Retailers
Retailers
Retailers
Retailers
Retailers
Retailers
Retailers
The companys headquarter are located in 9 different cities of country. They are: Kathmandu, Birgunj, Narayangardh, Janakpur, Butwal, Dharan, Biratnagar, Pokhara & Nepalgunj
Late Entry in the market . High Price Unaffordability by disadvantaged group Weak Research and Development centre in comparision to MNCs.
Strenths
Weaknesses
Opportunitites
Large market to capture . Novel drug delivery system Fills the gap of ortho range Target to other therapeutic group like gyanecologist, general physicians.
Threats
Increasing Competition Very few customers are aware of the product Rising drug cost due to rise in price of raw materials Change in regulations Urban people more turning towards herbal medicines Unethical practises in the maarket
prescribes the product. By loyal customers that means renowned doctors in the field of Ortho, Gynaecology and General Physicians. Market Penetration Target: During the first year NPL should have set the target to make the Brand available in 9 major cities; Kathmandu, Birgunj, Narayangardh, Janakpur, Butwal, Dharan, Biratnagar, Pokhara and Nepalgunj. Sales Target: NPLs sales target for the first year is a sales of 5000 boxes. Each box cost 1100. So the total sales target is NRs 5500000. Second Year Objectives: Second year objectives have not been set discretely. It would be planned on the basis of targets achieve during the first year and feedbacks during that time range. NPLs main focuses for the second year are as follows. 1. Increase the sales revenue by 20% 2. Educate second level customers. 3. Increase loyal customers by 30%. Issues: The market that NPL plan to tap already has few existing and competitive brands. Few of the customers have also been tapped by other brands. So, the market launch should be very aggressive. Heavy investment should be done not only during the launch but also throughout the year. Also there will be putting in lot efforts to educate Doctors in the three mentioned fields as a lot of them are still unaware of its usages. NPL need to develop media plan for whole year promotional plan.
MARKETING STRATEGY:
Positioning:
The punch line of Osamax is Osamax today for healthy bone tomorrow and it is targeted to few selected qualified customers (cream doctors): physician, gynecologist and orthopedics of the territory whose prescription can change the sales scenario. The product will be promoted as the only effective treatment for osteoporosis in men and menopause women. The brand name is somewhat similar to the brand name of the research brand which would be easy to remind to the target customers. The product will also be promoted on the basis of its unique packaging that provides patient with exact dose of 6 months and first brand with patient leaflet information in Nepali that would be highlighted in our product card.
Product strategy:
OSAMAX is the product used for the treatment of osteoporosis, but OSAMAX not only provides remedy for the treatment of osteoporosis, it will help patient to gain Bone mass and improve quality of life to patients. Besides they will have the benefit of unique packaging that will provide them with exact dose of 6 months with complete information leaflet in Nepali / English which will guide them through the dosage regimen of Medicine and precaution they should adopt while taking this medicine. The company has also decided to provide direct patient service to the patient like patient counseling and dose reminder to the patient taking this medicine since the medicine possess some side effects which might harm and cause secondary disease to the patient , the company will also have regular BMD testing to the patient so as to assure that they are gaining bone and are not prone to osteoporotic fractures .
Packaging: 6s X 10, exact dose for 6 months With patient information leaflet
Augmented Product
Actual Product
Patient information leaflet in Nepali
Packaging 4s X 10
Distribution plan:
Since the product is a lifestyle drug and is quite expensive I will first try to promote this product in the target segment of city areas of Nepal, where there is a purchasing capacity and where we see mobility and scope of the products .Kathmandu will have the high target and the product will be vigorously promoted at Kathmandu valley , but the areas like janakpur , Butwal and
Nepalgunj will have less target since the doctors over there do not readily prescribe new product . NPL will follow the regular distribution channels from its core distributors to the retailers for the availability and its sales representatives will make sure that each retail counter will have the product OSAMAX before launching so as to avoid prescription bounce.
Visual Aid
Advertising: As direct advertisement are not allowed due to government legislations indirect promotions can be done with the help of informative visual aids . Visual Display: The Medical Representatives Visual Aid will be more communicative highlighting only specific information. Flex, boards, Leave behind Cards (LBCs),table tob design will be prepared highlighting the sign and symptoms of Osteoporosis, its causes and preventive measures. The board will be filled with contents and information of preventive measures as well.
POSTERS
Buzz marketing: Through key opinion leader, bang on market will be created by arranging conference for the doctors from ortho department and making influential leader among them to speak on molecule and its advantages. Communication through SJS and Himalayan health informative journals which will highlight the use and efficacy of OSAMAX and these journals are distributed through its distribution network in different parts of the country. Direct Patient Service: To help our customers in patients front, NPL will have a system of direct patient service from the company itself to educate customers regarding drug and its
uses since doctors usually dont have enough time for patient counseling. It will be an added service to doctors as well as patients. Organizing health camps and measuring Bone Mineral Density (BMD) through BMD Machine which helps to identify patient suffering from Osteoporosis or those prone to osteoporosis.
Marketing Research:
In NPL Market planning department is responsible for conducting market research. Market Planning Department is the important wing considered as a Central Nervous System which conducts research and develops action plan for existing and new products. It consists of Pharmacist and few people from sales force. Since NPL is going to introduce product as per the market feedback, the introduction of Sodium Alendronate (OSAMAX) in product basket is totally based on market feedback. OSAMAX is not a OTC (over the counter drug) which the patient buys with their own knowledge as in case on any other general drug, so the burying behavior is solely dependent on doctors prescription I have conducted research on retailer level and doctor level. The research for market analysis and feasibility study of Sodium Alendronate was conducted as listed below: There are two major research tasks I tried to accomplish. 1. Check the penetration and market share of each of the brands: Before NPL can launch a new product, it should first know the market scenario. Sodium Alendronate is a new product and as per my understanding, the penetration of various brands is not that high. This research focused on the availability of various brands, popularity of each of the brands and their sales volume. With this NPL can exactly know what should expect from the market and how can tackle the market situation. 2. Analyze the popularity of the molecule among various doctors: As discussed previously, the molecule is new to the market. Not all doctors know about its usage yet. I found that only top doctors seem to be using this molecule. The molecule can be prescribed by Ortho, Gynecologists and General Physicians. Our plan is to understand the following a. Current situation of popularity of this molecule among these therapeutic categories. b. Names of the doctors who have been prescribing this molecule and their preferred brands. With this information, NPL can exactly know the doctors whom it can target to prescribe its brand. Also NPL can know the doctors whom It can educate on this molecule.
Survey Results: For research purpose, 55 chemists were selected. Among these, 42 of the chemist were having at least two of each brand. FOSSIL, existing national brand, was found in all of them. It means that FOSSIL has been able to generate prescription from their target customers. This led to a conclusion that most of the consultant Orthopedicians has been prescribing FOSSIL. However it was found that Magnus didnt focused on gynecologist and physician for FOSSIL which is an advantage for us. RESTOFOS and OSTEOFOS have not adopted any specific promotional activities for the particular brand, since they are much more focused on other therapeutic categories. Doctors from these therapeutic categories (Orthopedicians, Gynae, physicians) were shortlisted as per the feedback from the Medical Representatives. Information on sales/month of each brand in boxes was also obtained from the market survey including their price and information on packaging. A lot of doctors were found to be unaware of this molecule as it is very new therapy.
Product name
Company
MRP /strip
Packaging
Average Sales per month in Kathmandu 180 boxes 162 boxes 370 boxes
4s * 10 10s * 10 4s * 10
Marketing Organization
Its a marketing team responsible for all the marketing activities and promotion plan of OSAMAX
Ms.Manisha Shrestha
Product Executive
Action Plan:
The plan begins with choice of target market and suitable marketing strategy to reach them. By the four Ps mentioned above, I have set the position, price, place (distribution locations) and promotion (communication). Discretely following are our action plans. NPLs new product OSAMAX is comparatively an expensive medicine and is sold on prescription only. So NPL should have to go with super core doctors as our target. Since medical products are not allowed to use broadcast media or print media, direct marketing approach and personal communication approach is best way to reach out target. The plan is to make a list of super core doctors from inside and outside of valley. Then NPLs product team will approach them with its upcoming products and try to convince them to become opinion leaders. NPLs Product Executives (PEs) will be involved in providing detailed product demonstration to these super core doctors. Out of the core doctors, NPL plan to select 5 to 8 doctors as opinion leaders per MR. Once cultivation of opinion leaders is achieved then they are entitled to prescribe NPLs product to their patients and affiliated pharmaceutical stores. Initial sample will be combined with brand reminders like heaters with products name and may be complimentary pens and notepads. MRs will have to pay regular visits and update the status. Plans to organize medical conferences and exhibits.
Actions Conference Launching gift Brochures Flex , Boards BMD for camps Samples Incentive 1 2 3 4 5 6 7 8 9 10 11 12
Action Plan Calendar Details of promotional plan and visit plan for the first year to meet objective
Bang on the market through conference and promotion through key opinion leader. NPL plan to hold two conferences by two key orthopedists in Kathmandu. These conferences would be focused on molecule and therapy education. Visit with a team including APM, PE, SM, and FM on the day of launching with a launching gift to select super core doctors. Visit will be repeated by the concerned MR, at least 3 visits in a month to reinforce the brand and to review prescription status Brochures would be given for distribution in Medical organizations involving target doctors. Leave behind cards (LBC), economical gifts will be provided with the brand name encoded for brand reminder. Free samples would be provided to the selected doctors. Flex and boards would be distributed to retailers and distributors. Also, these would be used during conferences and health camps. BMD (Bone Mineral Density) machine is a key device for diagnosing Osteoporosis. However, this device is very rare in Nepal. So, NPL team will buy this device and provide the device and a team of experts during various camps organized by selected doctors. NPL will plan to organize/participate in at least four camps. Lucrative incentives would be provided to MRs based on their sales targets.
Budget
Budget allocation for advertising is based on our media plan,
New product quantity rate 1 2 Conference 150000 Launching gift 128 96000 Brochures 1500 67500 Flex , Boards 600 BMD 1200000 Samples 6372 1223424 Incentive 213693.2 Total Budget: 2951217 Sales target 5000 5500000 Total Media expense: 53.7% of Sales Target 3 4 5 6 7 8 9 10 11 12
As per the media plan, advertisement and total cost for the promotion includes conference cost for buzz market, launching gift for key customers, brochures, flex and boards, investment on BMD machine , samples , incentives and target . The total budget allocated for total promotional activities is 53.7% of total sales target for the whole year.
CONTROL MEASURES
NPL is bringing new product into an existing market so it should have plan of using product development strategy. PDCA model can be implemented to achieve control over the implemented marketing strategies. The PDCA model consists of four different activities carried out in sequential order Plan The plan begins with choice of target market and suitable marketing strategy to reach them. NPL will follow our plan as mentioned in Action Plan. To sum up, key plans should be as follows: Selection of 5 to 8 core doctors as opinion leader. molecule demonstration through key opinion leader to create bang on the market Launching visits with team ( APM,PE,SM,FM) Repeat visit by MR to reinforce the Brand Inputs for brand Reminder ( Promotional Gift items, leave behind cards , Posters , pen and pads ) Free Samples Organizing Health camps with BMD machines Lucrative incentives would be provided to MRs based on their sales targets. Plan Do Check and Act
Do: The above plan is put into implementation. Careful choice of super core doctors are made and approached in a very professional manner by the product team. Product demonstration is given and when they agree to become opinion leaders, supplementary items are provided. Regular medical conferences are held as our product as official sponsor. This will create a buzz and help in product promotion very strongly. Check: The most important part of check procedure is preplanned regular visits. Every MR will have separate list of doctor from inside and outside of valley which they have to visit a number of times in a given time interval. The main purpose of visits will be the status collection through a number of data sheets. The collected status will be submitted on time to the management for reviewing purpose. By status, I mean the following 1. EP: exclusive prescriber (who provides only our product of that molecule considering volume business) 2. MP: mixed prescriber (who provides our product with one or two other companies of the particular molecule, considering volume business) 3. OP: occasional prescriber (who prescribes our product very rarely) 4. NP: non prescriber Seniors managers will also visit the top listed doctors for personal marketing. The collected status will be the main agenda in every meeting. Respective people will be held responsible for success or failure of the product in their predestined area. Sales analysis will also be carried out and reviewed regularly. (ANNEXURE, 06)
Action: Necessary actions must be taken immediately as per suggestion of MR, FM, SM and PE. When a chosen super core doctors regularly prescribes their gesture is well supported by SAS. When they do not recommend the SMs will visit and communicate for chance of prescription. If not, there will have to search for new super core doctors. When doctors prescribe but not regularly then will have to send SM for session to increase. NPL has to change action plan as per the market feedback and develop second year plan accordingly
Rules to be followed for successful control Work book must be timely filled and brought to every meeting. (Mentioned in Annex) A photocopy should also be brought for use of FM, PE, and SM Improper filling will be asked for full justification Incentive programs will be there for motivation and better performance.
Conclusion
A lot of effort has been put into bring out this product. Launching date has been set to the first of 15th February 2012. I hope that the effort within the company including all the effort from NPL team will pay off with successful penetration in the market. I wish all of people strong and healthy bones.