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Pharma research new product development
Pharma research new product development
Pharma research new product development
Pharma research new product development
Pharma research new product development
Pharma research new product development
Pharma research new product development
Pharma research new product development
Pharma research new product development
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Pharma research new product development

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Market research case study, Pharmaceutical Case Study, …

Market research case study, Pharmaceutical Case Study,
New Product development, market research for new product development, New OTC product development,
Market research in pharmaceutical, business plan for new product development

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  • 1. Created by :Sandeep Sharma More Details blog:http://sandyclassic.wordpress.com linkedin:https://www.linkedin.com/in/sandepsharma slideshare:http://www.slideshare.net/SandeepSharma65 facebook:https://facebook.com/sandeepclassic google+ http://google.com/+SandeepSharmaa Twitter: https://twitter.com/sandeeclassic Business Plan: New Pharmaceutical OTC Product Development 1. Over The Shelf Product : OTC product : for stomach problem like digestion, gas, and constipation.(OTC products the volumes sales are more as compared with non –OTC). Product should target Constipation (as it requirement and trends shows highest distress among customers), then gastric and disgestion. As per study conducted [6] [7] [8] [9] [10] we also identified There were 14 encounters for 7 people that noted suspicion of an eating disorder. Two of the 7 individuals had eating disorder diagnoses recorded at one or more of these had follow-up encounters. As OTC is sold directly to consumer without prescription from healthcare professional. 2. Long Term Aim : Since As we see from the data below Stomach related problems are the highest cause of worry among individuals and moreover its trends is growing quite rapidly over period of time. Stomach Ailments and major cause of of all other major diseases like ulsers , cancer etc. Hence there exist strong potential to tap and enter into this market. Extended reach of formulation:  constipation during pregnancy.  constipation to baby age group 0-5, 5-10, 10-15 each one has different requirements.  constipation for developing countries with less cost product being focus.  constipation pain.  constipation causes. (special conditions) banana constipation etc.  constipation immediate relief.  Gastric Ulser  Gastric Bypass surgery.  Gastric Bands  Digestive engymes. 3. Objective: To be market leader in OTC stomach products. Hence target the fastest growing segement with high volumes: 4. SWOT Analysis Gather data about potential market from survey monkey. Develop survey put closed ended questions so you can funnel you energy to finite options. Based on market research feedback Strength: Figure1 : The Requirement for effective OTC Constipation product (source: google analytics) You can see the amount of interest of constipation related product is far exceed come Over the Shelf Pharmaceutical products. And more over its ever increasing and Also there is not much alternative available in market.
  • 2. Created by :Sandeep Sharma More Details blog:http://sandyclassic.wordpress.com linkedin:https://www.linkedin.com/in/sandepsharma slideshare:http://www.slideshare.net/SandeepSharma65 facebook:https://facebook.com/sandeepclassic google+ http://google.com/+SandeepSharmaa Twitter: https://twitter.com/sandeeclassic Weakness: As OTC are directly sold there needs to be a need to educate the customer directly which means money spent on advertisement to highlight the importance of healthy stomach to prospective customers who may not be aware of health issues and not health expert. As Non OTC drugs goes to customer through prescription of healthcare professional who can better understand the body physiology and its needs hence convey the same to consumer. The trust of patient to doctors is more when on the drug prescribed. So here in OTC product we have to reach out to customers directly and be visible to them create awareness among them for product to pick up. Opportunities: Enormous opportunities exists as shown in figure among of searches people are making of stomach related problems the product should target Constipation as major issue. Constipation trend is rising continuously as we can see from the data. Threat: 1. Threat exist from substitute products from FMCG majors like Biscuit with fibre, but they are not as effective as OTC formulation as the amount of fibre in FMCG products are limited to maintain the taste buds of customers. 2. OTC sales have declined most in the countries that have been worst hit by the economic crisis. What are major alternatives fruits and fibre product but they are not as successful in dealing with it hence the need is growing day by day. Market Analysis Target market: Figure 2: The market for constipation product region wise:
  • 3. Created by :Sandeep Sharma More Details blog:http://sandyclassic.wordpress.com linkedin:https://www.linkedin.com/in/sandepsharma slideshare:http://www.slideshare.net/SandeepSharma65 facebook:https://facebook.com/sandeepclassic google+ http://google.com/+SandeepSharmaa Twitter: https://twitter.com/sandeeclassic Figure 3: The country wise interest in Constipation product: Total market valuation: The worldwide market for over-the-counter OTC drugs will be over $70 billion by 2015, [5] according to a report by Visiongain, a British research company. The U.S. market for OTC drugs was $17.4 billion in 2011, according to the Consumer Healthcare Products Association (CHPA), an OTC industry trade group. That's a steady, though not radical increase from 1964 when OTC sales were recorded at $1.9 billion. The Cough is highest selling pharmaceutical OTC product exceeding 4 billion dollars.[5] Second is pain killers about 2.3 billion dollars. Heartburn comes next with 1.4 billion dollars. Laxatives sales were 0.875 billion dollar. Oral Antiseptics 0.754 billion. Figure 4: The comparison of search interest world wide of Constipation Vs Cough product.
  • 4. Created by :Sandeep Sharma More Details blog:http://sandyclassic.wordpress.com linkedin:https://www.linkedin.com/in/sandepsharma slideshare:http://www.slideshare.net/SandeepSharma65 facebook:https://facebook.com/sandeepclassic google+ http://google.com/+SandeepSharmaa Twitter: https://twitter.com/sandeeclassic Figure 5: March data 2013 search trends reflects is there are 79 searches on cough there are 44 on constipation. Considering Laxative market less than 1 billion dollar Is there need for product ? and is market exist for it? Comparing search trends we can find ration of cough requirements : constipation is 79:44 Its market its market is 4 X 44 / 79 billion dollars. Which is 2.22 billion dollars where as present market is giving on 0.875 billion dollars. Potential exist to triple sales. And going by sales it would be second best OTC drug only after cough products. Targeted share: Since we are Targeting Constipation+ gastric+digestion product the Total market is around 2.22+ heartburn 1.4= 3.6 billion dollar. Which will make it most selling product in all category just after 4 billion dollar sales of top selling cough products. Present sales in same category is only 0.875 bilion dollar. Out of 3.6 billion dollars - 0.875 billion dollars =3.2 billion dollar yet to catered market we can target maximum because of void which exist in space not many company targeting laxative market. Market trends: Trend as we can see is ever increasing over the period of time its only next to cough products. As can be seen from the figure 5. Sales of OTC medications have been stable or on the rise in the United States and Western Europe where patients are more frequently turning to non prescription drugs for the treatment of minor illnesses while reducing trips to the physician's office. [5] At best, these products directly compete with public health efforts to promote healthful weight control in the U.S. population to address the obesity epidemic5, and at worst, they contribute to substantial, preventable morbidity and mortality affecting adolescents and adults in all sectors of our society [9] [10] [11] From an industry perspective, the picture is much brighter: The sale of these products to the adolescent and adult markets in the U.S. generates billions of dollars every year.[11] [12] A seemingly endlessly growing market, by 2006, annual U.S. sales of weight-loss products had reached $35 billion Profile of competitors: Johnson & Johnson's Consumer Products division sells branded OTC products worldwide, including the painkiller Tylenol, Listerine mouthwash, Visine eye drops and Desitin for diaper rash.[5] Novartis [5]sells the popular OTC painkillers Bufferin and Excedrin; Volterin, an anti-inflammatory; Pursennid and Benefiber which are fiber supplements; cough and cold products branded as Buckley's, Comtrex, and Sinecod; as well as popular medicines for treating sore throat, respiratory problems and nasal congestion. Proctor & Gamble Pharmaceuticals' [5]OTC products include the heartburn medicine Prilosec, Pesto- Bismal for upset stomach, Vicks cough and cold medicines, and Metamucil fiber supplement. Other leading OTC sellers include GlaxoSmithKline, Sanofi, Bayer, Pfizer, Boehringer Ingelheim, Merck & Co., Perrigo and Reckitt Benckiser. Competitive advantage:
  • 5. Created by :Sandeep Sharma More Details blog:http://sandyclassic.wordpress.com linkedin:https://www.linkedin.com/in/sandepsharma slideshare:http://www.slideshare.net/SandeepSharma65 facebook:https://facebook.com/sandeepclassic google+ http://google.com/+SandeepSharmaa Twitter: https://twitter.com/sandeeclassic Othe As we can see None of the existing companies have specifically targeted offering for constipation + gastric OTC product: Norvartis has Pursennid and Benefiber which are fibre supplements. But they are still not catering to the potential market was we can see from over research. But still we need to differentiate ourselves from the market products. Hence we are going to give single product which deals with Constipation gastric and digestion. As most of cases the gastric is caused by constipation and same is reason for gastric. Benefits to clients: As most of cases the gastric is caused by constipation and same is reason for gastric So the benefit of single product offering to customer is immense and not comparable. A study [13]commissioned by the CHPA suggests that consumer spending on drugs could be reduced by $5 billion a year by using OTC meds as a first response to illness. Additional savings can be had by buying generic rather than branded OTCs. Figure 6: Reported response to unnecessary visits to doctors.
  • 6. Created by :Sandeep Sharma More Details blog:http://sandyclassic.wordpress.com linkedin:https://www.linkedin.com/in/sandepsharma slideshare:http://www.slideshare.net/SandeepSharma65 facebook:https://facebook.com/sandeepclassic google+ http://google.com/+SandeepSharmaa Twitter: https://twitter.com/sandeeclassic Another CHPA study found that "88 percent of physicians recommend patients try to address minor ailments with self-care interventions, including the use of OTC medicines, before seeking professional care." The study also found that some physicians consider about 10 percent of office visits for minor ailments could be managed by patients though the use of OTC drugs and other self care. Marketing/Sales Strategy Benefit of single product offering needs to be conveyed to potential customers. OTC drugs major sales is awareness campaigns to make customer are about product exist to cater there problem. TV/ film advertising should convey the long term impacts of not constipation which are very harmful. We can even tie up with big firms like Pfizer with extensive marketing network worldwide could offer an ideal channel to commercialize and exploit the said laxative market in short span of time. Talks and negotiation between the two companies eventually can led to a licensing agreement where both companies, as well as the general public, could benefit from the research and subsequent commercialization of a powerful laxative product. Since Pfizer sales in this category are much lower then competition. Marketing effort by geography: Figure 3 shows that regional interest of sales which shows US is followed by West indies then Australia and then Europe. We should focus on sales plan priority of region in similar order. If we get partner like Pfizer with reach in US and west indies then we can focus in Europe and they can target west indies. Marketing strategy How you will we position our laxative product or service in the market and differentiate it from its competitors:? No target offering for Constipation+ gastric + digestion product.  How will we differentiate your product or service? As we have seen above Target market for Constipation+ gastric digestion product the Total market is around 2.22+ heartburn 1.4= 3.6 billion dollar. Which will make it most selling product in all category just after 4 billion dollar sales of top selling cough products. Present sales can go up by another 3.2 billion dollar yet to catered market we can target maximum because of void which exist in space not many company targeting laxative market.  Which segments of the market will be targeted first? As we have seen these products directly complete with weight loss products which usually cater to the high income segment and people have blue collar sitting jobs where cases of obesity and constipation is higher also premium on product to upper income group is higher.  How will this be developed to reach the full target market? As we detailed the commercialisation aspect that either we can alone go and target in Europe where market is ripe in France, UK and Germany and for North American market we can tie up with Pfizer as they have relatively less presence in this segment of laxative compared to competition.  What key benefits will be highlighted? Constipation+ gastric+digestion in single product.  What potential customers have already targeted? Some competitors are targeting with fibre based product but we have differentiator to keep customer unfulfilled needs satisfied.  Have you a test site in operation, and what feedback is coming from this? Test site will be planned. Already data shows need for it. Hence we have to positive.
  • 7. Created by :Sandeep Sharma More Details blog:http://sandyclassic.wordpress.com linkedin:https://www.linkedin.com/in/sandepsharma slideshare:http://www.slideshare.net/SandeepSharma65 facebook:https://facebook.com/sandeepclassic google+ http://google.com/+SandeepSharmaa Twitter: https://twitter.com/sandeeclassic  What contacts can be used to generate market awareness and sales? Display borads, TV advertisement in dance shows like programs help as people with sitting job tend to love and see the other side like excersise programs and dance programs also we would target gym especially old people.  marketing: staff, agency, reps will decided as after roll out. Sales Strategy selling our product and services to the target market.  Directly ( tents and awareness camps in shopping malls and railway station)  Retail (display board at retail store)  Distributor ( Country , region and district distributor network would be created)  Agent (distributor party will act as agents in market)  Sales rep ( We would require Sales head OTC product to map this product to sales manager in respective countries and futher to sales agents to set up awareness camps with agents.)  Website: (awareness constipation website would be setup and reach out to people using social media and other platform. Sales rep can be given extra commission for bring more people to this website and that can be tracked with accuracy.  Revenue Sharing Partners Analyse for each method for the costs involved, to reach the intended market efficiently, the control you would retain to OTC sale head over the pricing and positioning, the logistics, and the overall integration with your marketing strategy. So the strategy can be tweaked as we gain feedback from the market. Pricing: The price charged for the product and service considerations include comparison of :  Competitors’ prices : As we have differentiated our self from the market the preimum price can be taken since market is there but the product does have substitute we can put product price < price(constipation product+ gastric product+ digestion )  Level of competition in the market: we have sufficient untapped market of 3.2 billion dollar with differentiated offering.  Perception of quality-price relationship by customers Demand which exist and differentiated 3 in one product has to be of good quality which can replace three products used by customer we can really fetch good price just less than sum of three products.  Production costs and overheads The product costing will be little n higher side because we have to put laxative with digestive with gastric removal effect.  Chain of distribution and the added-value at each stage  The extent to which the buyer can control the price: We have good differntiator and we can control price to our advantage. Advertising and Promotion Promotion of our product or service in the marketplace.
  • 8. Created by :Sandeep Sharma More Details blog:http://sandyclassic.wordpress.com linkedin:https://www.linkedin.com/in/sandepsharma slideshare:http://www.slideshare.net/SandeepSharma65 facebook:https://facebook.com/sandeepclassic google+ http://google.com/+SandeepSharmaa Twitter: https://twitter.com/sandeeclassic  Advertising – where (TV, news, Railway station, Mall, office cantene), when (office return time, office going breakfast time), how (awareness workshops, pamphlets showing benefits), to whom ( major office goers with blue collar office jobs)  Public relations (awareness website links mailed to office admin to create awareness)  Website and internet marketing for awareness.  Exhibitions and conferences ( display stalls for people to experience it) Research and Development Ongoing R&D as an activity of the company, is exploring unifying laxative+gastric+digestion product And also the product into three forms . powder, liquid and pills. Pills targeted at office goer. While highly effective liquid products to people have major concern of constipation. We have major areas where specially target constipation + gastric+ digestion product requirements are being studied: 1. constipation during pregnancy. 2. constipation to baby age group 0-5, 5-10, 10-15 each one has different requirements. 3. constipation for developing countries with less cost product being focus. 4. constipation pain. 5. constipation causes. (special conditions) banana constipation etc. 6. constipation immediate relief. 7. Gastric Ulser 8. Gastric Bypass surgery. 9. Gastric Bands 10. Digestive engymes. References : [2] Market Research regulation as per THE CODE OF MARKETING RESEARCH STANDARDS, Marketing Research Association, Inc. Ratified March, 2007 [3] RCUK Policy and Guidelines on Governance of Good Research Conduct 2013 Universities UK Concordat to Support Research Integrity http://www.rcuk.ac.uk%2Fdocuments%2Freviews%2Fgrc%2FRCUKPolicyandGuidelinesonGov ernanceofGoodResearchPracticeFebruary2013.pdf&ei=A_9aUYb2CtSChQfYnIHgAQ&usg=AFQ jCNHnmE9XWup9ZJdjVJ4vvQiAf7larA&sig2=oy9JNC5PyzUSJ87vcPrpDw&bvm=bv.44697112, d.ZG4 [5] The OTC drug report : http://pharma.about.com/od/Over-the-Counter-Medicine/a/The-Over- the-counter-Drug-Industry.htm [6]. Neumark-Sztainer D, Croll J, Story M, Hannan PJ, French SA, Perry C. Ethnic/racial differences in weight-related concerns and behaviors among adolescent girls and boys: Findings from Project EAT. J Psychosom Res 2002;53:963. [7] Blanck HM, Serdula MK, Gillespie C, et al. Use of nonprescription dietary supplements for weight loss is common among Americans. J Am Diet Assoc 2007;107:441-7. [8] Steffen KJ, Mitchell JE, Roerig JL, Lancaster KL. The eating disorders medicine cabinet revisted: A clinician's guide to ipecac and laxatives. Int J Eat Disord 2007;40:360-8. [9] Roerig JL, Mitchell JE, de Zwaan M, et al. The eating disorders medicine cabinet revisited: A clinician's guid to appetite suppressants and diuretics. Int J Eat Disord 2003;33:443-57. [10] Austin SB, Rich MR. Consumerism: its impact on the health of adolescents. Adolescent Medicine: State of the Art Reviews 2001;12:389-409.
  • 9. Created by :Sandeep Sharma More Details blog:http://sandyclassic.wordpress.com linkedin:https://www.linkedin.com/in/sandepsharma slideshare:http://www.slideshare.net/SandeepSharma65 facebook:https://facebook.com/sandeepclassic google+ http://google.com/+SandeepSharmaa Twitter: https://twitter.com/sandeeclassic [11] Heinrich J. Dietary supplements for weight loss: Limited federal oversight has focused more on marketing than on safety (Senate testimony July 31, 2002). In: General Accounting Office, ed. Washington, DC; 2002. [12] McNamara M. Diet industry is big business: American spend billions on weight-loss products not regulated by the government. In; 2006. [13] Potential Reduction in Unnecessary Visits to Doctors from Safe and Appropriate Use of OTC Medicines Could Save Consumers and Taxpayers Billions Annually, June 17, 2011, Paul A. London and Associates

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