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Analysis & Assessment
of Kemirica® relative to
its Alternatives in the
light of recent market
dynamics.
Prepared by: Marco Makram.
Management: Dr. Bassem Saeed.
Based on the recent team-2A discussion
moderated by Dr.Bassem Saeed and by using
Decision Matrix
• The main attributes and criteria that Differentiate the
different available brands of pregabaline and their
weight of importance are as follow:
1) Efficacy…………30%
2) Price and cost……….20%
3) Availability of different strengths…..15%
4) Service offered to customers……….20%
5) Coverage and follow up of customers based on the
number and size of field force…..15%.
Evaluation of Alternatives using Decision Matrix.
Attributes
criteria
Importance
weight
(Wt)
Kemirica (Km) Lyrolin (Ly) Pregavalix (Px) Rationale
Km
Rate
(R1)
Km
Score
(Wt*R1)
LY
Rate
(R2)
LY
Score
Wt*R2
PX
Rate
(R3)
PX
Score
Wt*R3
1-Efficacy 0.3 3 0.9 3 0.9 3 0.9 Highly
effective.
2-Price 0.2 2 0.4 3 0.6 2 0.4 High
Prices of
Px
150&300
3-
Availability
of various
strengths
0.15 3 0.45 2 0.3 2 0.3 Km
provides
all
strengths.
4-Service 0.2 2 0.4 3 0.6 3 0.6
5-Field
force.
0.15 2 0.3 3 0.45 3 0.45 Higher
number
of med
reps. On
Ly&Px.
Total
Score.
2.45 2.85 2.65
Where R=3 for Good performance, R=2 for average & R=1 for poor.
Score= Weight*Rate.
• Rationale for the suggested rates:
a) All these alternatives are highly effective &trustable.
b) Prices of Km 50,75,100&150 are 29,32,35&39 EGP per strip
respectively while for LY 50,75&150 are 23,28&35
respectively which are the most economic prices. On the
other hand prices of Px 50,75,150&300 are 23,26,52&67 EGP
respectively.
c) Km is the only brand that provides all the available strengths
from 25mg to 300 mg.
d) LY and PX have bigger size of the field force therefore better
coverage and follow up.
Due to recent changes in prices, it’s time to remember the rule
of
“Price elasticity of demand”
• Price Elasticity of Demand = % Change in Quantity Demanded / % Change in Price
• We are facing 2 styles of demand change that occurs in response to change in
prices:
1. Inelastic Demand where demand does not change when price changes as values
between zero and one indicate that demand is inelastic (this occurs when the
percent change in demand is less than the percent change in price)
2. Elastic demand which means that demand is
changed to a greater degree by change in prices as
the value of price elasticity of demand equal to or
greater than one as this occurs when percent
change in demand is higher than percent change in
price.
Example on lyrolin 75 mg which face change in price
from 20 EGP to 28.5 EGP equal to about 42% change
in price
• If this change in price result in 42% or higher
decrease in sales (demand), it is considered as
elastic demand.
• If the resulting change in sales and demand is
less than 42%, therefore it is considered Inelastic
demand.
• Main factors that affect “Price Elasticity of Demand” :
1. Availability of substitutes: As Demand for a product
with large number of substitutes will be more elastic.
2. Nature of the product: When a product is a necessity
like vital medicines, its demand is generally inelastic
as it is required for human survival and its demand
does not fluctuate much with change in price.
3. Income level: Elasticity of demand for any
commodity is generally less for higher income level
groups in comparison to people with low incomes.
Analysis & assessment of kemirica® relative to

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Analysis & assessment of kemirica® relative to

  • 1. Analysis & Assessment of Kemirica® relative to its Alternatives in the light of recent market dynamics. Prepared by: Marco Makram. Management: Dr. Bassem Saeed.
  • 2. Based on the recent team-2A discussion moderated by Dr.Bassem Saeed and by using Decision Matrix • The main attributes and criteria that Differentiate the different available brands of pregabaline and their weight of importance are as follow: 1) Efficacy…………30% 2) Price and cost……….20% 3) Availability of different strengths…..15% 4) Service offered to customers……….20% 5) Coverage and follow up of customers based on the number and size of field force…..15%.
  • 3. Evaluation of Alternatives using Decision Matrix. Attributes criteria Importance weight (Wt) Kemirica (Km) Lyrolin (Ly) Pregavalix (Px) Rationale Km Rate (R1) Km Score (Wt*R1) LY Rate (R2) LY Score Wt*R2 PX Rate (R3) PX Score Wt*R3 1-Efficacy 0.3 3 0.9 3 0.9 3 0.9 Highly effective. 2-Price 0.2 2 0.4 3 0.6 2 0.4 High Prices of Px 150&300 3- Availability of various strengths 0.15 3 0.45 2 0.3 2 0.3 Km provides all strengths. 4-Service 0.2 2 0.4 3 0.6 3 0.6 5-Field force. 0.15 2 0.3 3 0.45 3 0.45 Higher number of med reps. On Ly&Px. Total Score. 2.45 2.85 2.65
  • 4. Where R=3 for Good performance, R=2 for average & R=1 for poor. Score= Weight*Rate. • Rationale for the suggested rates: a) All these alternatives are highly effective &trustable. b) Prices of Km 50,75,100&150 are 29,32,35&39 EGP per strip respectively while for LY 50,75&150 are 23,28&35 respectively which are the most economic prices. On the other hand prices of Px 50,75,150&300 are 23,26,52&67 EGP respectively. c) Km is the only brand that provides all the available strengths from 25mg to 300 mg. d) LY and PX have bigger size of the field force therefore better coverage and follow up.
  • 5. Due to recent changes in prices, it’s time to remember the rule of “Price elasticity of demand” • Price Elasticity of Demand = % Change in Quantity Demanded / % Change in Price • We are facing 2 styles of demand change that occurs in response to change in prices: 1. Inelastic Demand where demand does not change when price changes as values between zero and one indicate that demand is inelastic (this occurs when the percent change in demand is less than the percent change in price)
  • 6. 2. Elastic demand which means that demand is changed to a greater degree by change in prices as the value of price elasticity of demand equal to or greater than one as this occurs when percent change in demand is higher than percent change in price. Example on lyrolin 75 mg which face change in price from 20 EGP to 28.5 EGP equal to about 42% change in price • If this change in price result in 42% or higher decrease in sales (demand), it is considered as elastic demand. • If the resulting change in sales and demand is less than 42%, therefore it is considered Inelastic demand.
  • 7. • Main factors that affect “Price Elasticity of Demand” : 1. Availability of substitutes: As Demand for a product with large number of substitutes will be more elastic. 2. Nature of the product: When a product is a necessity like vital medicines, its demand is generally inelastic as it is required for human survival and its demand does not fluctuate much with change in price. 3. Income level: Elasticity of demand for any commodity is generally less for higher income level groups in comparison to people with low incomes.