Marketing Presentation For 2011 MBA Program


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Mock marketing presentation on how large pharmaceutical companies market current prescription drugs.

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Marketing Presentation For 2011 MBA Program

  1. 1. Jeff Reid, Shweta Malhotra , Jimmy Jarrell ‘ Oxynac’ – A hypothetical product from AstraZeneca
  2. 2. Table of Contents <ul><li>Executive Summary </li></ul><ul><li>Current Marketing Situation </li></ul><ul><li>Market Description Overall </li></ul><ul><li>SWOT Analysis </li></ul><ul><li>Objectives and issues </li></ul><ul><li>Marketing Strategy </li></ul><ul><li>Action Programs </li></ul><ul><li>Budgets </li></ul><ul><li>Controls </li></ul>
  3. 3. About AstraZeneca <ul><li>AstraZeneca is one of the largest world-wide biopharmaceutical companies used as a resource for this idea. </li></ul><ul><ul><li>Also of local interest, based in Delaware and Europe as headquarters </li></ul></ul><ul><ul><li>Researches, develops, executes, legalizes, then sells pharmaceuticals to consumers. </li></ul></ul><ul><ul><li>In this situation, AstraZeneca is simply used as a model company behind inventing new compounds, through which future companies may better approach the sale of pharmaceuticals targeting neuropsychological diseases. </li></ul></ul>
  4. 4. AstraZeneca’s Main Goals <ul><li>In this simulation, the goal is to successfully market a new pharmaceutical drug to target an increasingly common and incurable disease; </li></ul><ul><li>Ultimately, the Company hopes to benefit a challenging and since-untreatable condition while gaining a significant annual product revenue despite research, development, production, and marketing costs. </li></ul>
  5. 5. Company’s Recommendations: <ul><li>Tools, Strategies, and Issues: </li></ul><ul><ul><li>Awareness of an emerging market for this type of disease </li></ul></ul><ul><ul><li>Assumption that AZ is capable of using the necessary technology to ascertain new data to support production and safety </li></ul></ul><ul><li>A strong and diligent chain of evaluation will greatly impact the product’s efficacy through its clinical phases and governmental reviews. </li></ul><ul><ul><li>Especially the approval of the USDA’s Development and approval process. </li></ul></ul>
  6. 6. Company’s Recommendations: <ul><li>Included approval processes that will make the product: </li></ul><ul><ul><li>Efficient, yet safe for the public. </li></ul></ul><ul><ul><li>Widely available/familiar/sellable. </li></ul></ul><ul><ul><li>And able to technically inform the consumers medically through the most efficient routes possible. </li></ul></ul>
  7. 7. <ul><li>The targeted segments for Oxynac will be the population of medical patients currently taking the more expensive Plavix and the medical community that endorses and prescribes medicines, specifically those in the cardiology field. </li></ul><ul><li>Plavix is the dominate medication in the field today, however with our testing showing lower side effects, we feel we can make huge inroads into their dominance in the prescription writing space. </li></ul><ul><li>We will train our pharmaceutical reps to enter the market and reach out to the medical community with samples and literature to gain market share. </li></ul>Current Marketing Situation
  8. 8. Overall Market Description <ul><ul><li>Market Description </li></ul></ul><ul><ul><li>Product Features </li></ul></ul><ul><ul><li>Benefits </li></ul></ul><ul><ul><li>Product & Competitive Review </li></ul></ul><ul><ul><li>Channels & Logistics Review </li></ul></ul>
  9. 9. <ul><li>Our Target Market is United States, and then soon expanding to Europe. </li></ul><ul><li>Target Marketing for Healthcare Industry, customers being Patients and Health Care Practitioner. </li></ul><ul><li>‘ Oxynac’ is a blood-thinning medicine designed to prevent dangerous blood clots in patients with serious chest pain or previous heart attacks. </li></ul><ul><li>An estimated of 1.3 million Americans get hospitalized due to such problems each year. </li></ul>Market Description
  10. 10. Product Features <ul><li>FDA approved in 2009, </li></ul><ul><li>‘ Oxynac’ Drug - A new blood thinner </li></ul><ul><li>Composed of oral antiplatelet ticagrelor. </li></ul><ul><li>Available in 75mg and 150mg capsules. </li></ul><ul><li>Affordable. </li></ul>
  11. 11. Benefits <ul><li>Preventing clots, heart attacks, strokes & death. </li></ul><ul><li>Preventing ACS includes a broad range of problems, including acute chest pain & heart attack. </li></ul><ul><li>No Risk of dangerous bleeding associated with the </li></ul><ul><li>new drug. </li></ul><ul><li>Safe with minimal side effects. </li></ul>
  12. 12. Product & Competitive Review <ul><li>Current competitor in the market is Plavix, the world’s second biggest selling drug. </li></ul><ul><li>Several Clinical studies of patients with ACS have shown that ‘Oxynac’, when compared with ‘Plavix’, reduces the rates of vascular death. </li></ul><ul><li>Reduction in non procedural bleeding. </li></ul><ul><li>Studies have demonstrated the superiority of ‘Oxynac’ </li></ul><ul><li>The study demonstrated similar safety and tolerability </li></ul>
  13. 13. Channels and Logistics Review Astrazeneca Wholesaler Depot/Stockist Hospitals Medical Institutions Retailer/Pharmacy Patient
  14. 14. SWOT ANALYSIS <ul><li>STRENGTHS </li></ul><ul><li>global reach </li></ul><ul><li>outstanding portfolio </li></ul><ul><li>creativity and commitment of employees </li></ul><ul><li>experienced research staff </li></ul><ul><li>state-of-the-art laboratory equipment </li></ul><ul><li>WEAKNESS </li></ul><ul><li>safety flags raised for previous medicine; Crestor for cholesterol </li></ul><ul><li>some failure on important medicines; Iressa for cancer survival. </li></ul><ul><li>may create a reputation of the company for developing unsafe/ineffective drugs. </li></ul><ul><li>OPPORTUNITIES </li></ul><ul><li>recently published research, </li></ul><ul><li>recent success in other countries </li></ul><ul><li>increasing need for innovative drugs </li></ul><ul><li>potential to create breakthrough products e.g. symbicort for asthma </li></ul><ul><li>THREATS </li></ul><ul><li>increasing cost of prescriptions </li></ul><ul><li>increased government regulation </li></ul><ul><li>increasing research and development </li></ul><ul><li>concerns on drug safety, reputation and competition </li></ul><ul><li>generic competition. </li></ul>
  15. 15. Objectives <ul><li>Year 1: Increase product awareness among the target audience. Inform target audience about features and benefits of our product and its competitive advantage. </li></ul><ul><li>Year 2: Decrease or remove potential customers' resistance to buy our product, leading to a 20 percent increase in sales that are closed in six months or less.  </li></ul><ul><li>Year 3: A double digit growth rate for first three years. Profitability by the end of year three. </li></ul>
  16. 16. Critical Issues <ul><li>Comparative selling due to available drugs in the market. </li></ul><ul><li>Internal disruption in the field due to the promotion of other products and potential launches. </li></ul><ul><li>Oxynac is still in speculative stages and would likely take a modest fiscal approach. </li></ul>
  17. 17. Oxynac Marketing Strategy <ul><li>Differentiation from Plavix </li></ul><ul><ul><li>Highlight unique qualities versus the competition </li></ul></ul><ul><li>Target medical professionals </li></ul><ul><li>Educate the public </li></ul><ul><li>Use pricing and distribution strategies to AZ’s benefit </li></ul>
  18. 18. Positioning and Product Strategy <ul><li>Position Oxynac in the market targeting patients with cardiovascular health problems and their healthcare providers. </li></ul><ul><li>Free samples made available to specialists in the field of heart health. </li></ul><ul><ul><li>Increase accessibility to treatment </li></ul></ul><ul><ul><li>Promote brand name </li></ul></ul><ul><li>Creates competition with other well-established drugs while highlighting its unique qualities. </li></ul>
  19. 19. Pricing and Distribution Strategy <ul><li>Pricing </li></ul><ul><ul><li>Based on average prices of competitors </li></ul></ul><ul><ul><li>Coupon for 25% discount on all prescription refills within the first year for consumers </li></ul></ul><ul><li>Distribution </li></ul><ul><ul><li>Pharmaceutical representative employees </li></ul></ul><ul><ul><ul><li>Focus on educating healthcare providers </li></ul></ul></ul><ul><ul><li>Distributed by pharmacies nationwide </li></ul></ul><ul><ul><li>Long-term treatment ensures reliable rate of distribution and profit through repeated prescription refills </li></ul></ul>
  20. 20. Marketing Communications and Research Strategies <ul><li>Communications </li></ul><ul><ul><li>TV, internet (web page, Facebook), and print advertisements </li></ul></ul><ul><ul><li>Educating consumers about health condition and potential treatments </li></ul></ul><ul><ul><ul><li>Doctor’s office pamphlets/literature </li></ul></ul></ul><ul><ul><ul><li>Patients can make informed decisions regarding their health, such as using Oxynac, if educated </li></ul></ul></ul><ul><li>Research </li></ul><ul><ul><li>National Institutes of Health statistics </li></ul></ul><ul><ul><ul><li>Indicates what sectors of the U.S. population are most likely to need Oxynac as a medical treatment to use targeted advertising </li></ul></ul></ul><ul><ul><li>Habits of people likely to need the drug </li></ul></ul><ul><ul><li>Creates ability to provide drug information to consumers at the right place and time </li></ul></ul>
  21. 21. Marketing Organization <ul><li>Chief marketing officer </li></ul><ul><ul><li>Oversees marketing operations and research </li></ul></ul><ul><ul><li>Structures the organization’s employees to most effectively and efficiently communicate information to consumers </li></ul></ul><ul><ul><li>Minimize role confusion among 30-employee marketing team </li></ul></ul><ul><ul><li>Ensures marketing and sales goals are met </li></ul></ul><ul><li>Public relations division </li></ul><ul><ul><li>Oversees distribution of information to potential consumers in the general U.S. population </li></ul></ul><ul><ul><li>Advertising </li></ul></ul><ul><li>Sales division </li></ul><ul><ul><li>Works with pharmacies and healthcare professionals </li></ul></ul><ul><ul><li>Uses distribution strategies. </li></ul></ul>
  22. 22. Marketing Strategy
  23. 23. Action Programs <ul><li>The action programs will consist of leveraging all of our internal and external partners </li></ul><ul><li>We will work with our internal marketing team as well as outside organizations to produce powerful TV spots </li></ul><ul><li>We will attend all the upcoming medical trade shows with validated results around all of our findings during testing </li></ul><ul><li>We will launch a specialized website dedicated to the product and link it to all pertinent pass through sites (live early 2011) </li></ul>
  24. 24. Action Programs <ul><li>The marketing team is currently in pre production for a series of TV spots, which we will test and then launch. These are being produced by Ogilvy & Mather, and will begin airing in Q3 of 2011. </li></ul><ul><li>We have decided to target all the major medical journals and trade organizations for articles, which will print in Q3 of 2011. </li></ul><ul><li>We will launch a series of print advertising in selected dailies and monthly magazines, also to print in Q3 2011. </li></ul><ul><li>We will launch a viral campaign using social media outlets to spread the message, this will begin in Q1 2011 to build a buzz. </li></ul><ul><li>There will be an attempt to find a celebrity spokesperson who will endorse the medication and the effects it had on them, currently in the works. </li></ul>
  25. 25. Budgets
  26. 26. Budgets <ul><li>AstraZeneca’s sales in 2010 were 33.3 Billion overall </li></ul><ul><li>US Sales were 13.7 Billion </li></ul><ul><li>Projecting Oxynac to be the next blockbuster generating 2.7 billion in sales within 5 years…starting with 500 million in 2012 </li></ul><ul><li>Marketing budget for 2011 will be 50 million leading up to the rollout in 2012 </li></ul><ul><li>Production costs will be about two dollars/pill at onset, once we have two locations manufacturing the pill they will reduce to one dollar/pill </li></ul><ul><li>We expect the pill to be accretive to earnings in year 3, once the full rollout is complete and the sales force has levered their medical connections. </li></ul>
  27. 27. Controls <ul><li>As we are a very regulated industry with FDA requirements and medical litigation always a possibility, we are working very closely with our legal department to make sure all marketing information is company approved before dissemination. </li></ul><ul><li>We have hired a new Chief Compliance Officer just for this specific drug, this person will oversee all day to day operations involving compliance surrounding the rollout of Oxynac. </li></ul><ul><li>We will have a marketing manager who oversees all marketing functions with regards to the new drug. </li></ul><ul><li>Additionally we have a financial manager overseeing the financials surrounding all aspects of Oxynac’s impact on the companies over financial situation. </li></ul>