NewCorp developed a new once-a-day non-narcotic drug called NewProductTM CD to treat ADHD and compete in the lucrative $1 billion per year ADHD drug market dominated by Ritalin. However, due to a lack of effective marketing and market research, NewProductTM CD only achieved 25% of its anticipated 30% market share goal within 6 months of launch. The document outlines several marketing strategies and research approaches NewCorp should have utilized before and after launching NewProductTM CD, such as following Dr. Latta's NP/4P research paradigm, conducting consumer surveys and trials, creating targeted television and print ads, and sponsoring educational programs, to better understand customer needs and promote awareness of

1. Jennifer V. Dougherty
September 29, 2004
Pharmaceutical Marketing Research
Dr. Michael Latta
The market for pharmaceutical drugs is extremely lucrative and therefore highly
competitive. The market for Attention Deficit Hyperactivity disorder medicine alone is worth over
$1 billion per year (Virtue 1). For such a large market there are only three drugs competing for
market share within the ADHD category. Ritalin currently secures a total of 70% of the ADHD
market, including 30% of the market with Ritalin, a short-acting tablet taken 4 times a day and
additional 40% with Ritalin SR, taken 3 times a day. The remaining 30% is procured by a longer
acting formula quickly rising in popularity, Adderall. However, in an effort to gain a piece of
Ritalin’s huge market share other drug companies are attempting to develop new ADHD drugs and
aggressive ad campaigns to compete. Each one of the current ADHD drugs on the market are
considered a narcotic and have high potential for side effects including dependency, abuse, weight
loss, and insomnia. It is no wonder that companies are eager to introduce new ADHD drugs into a
wide-open and growing market. “New prescriptions for Attention Deficit Disorder increased almost
40 percent the past five years” (Virtue 2). Last year alone doctors wrote more than 20 million
prescriptions for ADHD medications and more American children are diagnosed with Attention
Deficit than any other country in the world (Virtue 2). There is a small biotech firm, NewCorp who
recently developed a unique once-a-day non-narcotic product to compete in the ADHD category.
NewCorp hoped to achieve 30% market share, 6 months post launch. However, due to lack of
effective marketing and research, NewCorp’s NewProduct ™ CD fell 25% short of its anticipated
market share.

2. Dougherty 2
The research effort and marketing campaign of NewProduct™ CD was relevant, however it
was not effective. Pre-launch of this new formulation it would have been extremely beneficial for
NewCorp to have better researched and understood the marketing process. The first step of the
product life cycle, before launching a new product is market research, which assists in assessing the
viability of the launch and the consumer needs within the market. In order for NewCorp’s first
initial launch of NewProduct™ CD to be successful in achieving its goals, market research was
essential. NewCorp successfully fulfilled the market concept by finding out what customers wanted
and then through new product development produced and delivered such a product more effectively
than competitors. NewCorp’s NewProduct™ CD contains that attributes considered important to
both patients and physicians of the ADHD market alike. NewProduct™ CD is an easy to swallow
capsule with a non-narcotic active ingredient, delivered in dual release microbeads. Used by
patients who suffer from Attention Deficit Hyperactivity Disorder, the two microbead sizes allow
fast onset of action followed by a smooth delivery for a full day’s coverage, with the flexibility of
an optional dose later in the day. Side effects are much fewer than the compared narcotic alternative
ADHD medications. NewCorp’s once a day pill leads to unprecedented consistent blood levels with
other ADHD medications. NewCorp also developed a convenient packaging, with a price that is
equivalent to other products of the same kind.
NewCorp even did a great job of dividing the consumers into segments and concentrating on
the segment of patients ages 6 to 18 in order to get the larger share or increased sales. NewCorp had
the opportunity to gain great market share because of its tremendous strength. In their case, brand
loyalty to current ADHD drugs might not be as high if there were a better alternative that physicians
recommended to the target market, and their concerned parents. Targeting the parents of these
patients as well as their physicians allowed NewCorp to firmly establish the target market.

3. Dougherty 3
However what NewCorp failed to do was sufficient research on this segment of the market
and their attitudes, behaviors, trends, etc. Due to NewCorp’s relatively small size, outsourcing the
research or even collaborating with another pharmaceutical company for a joint venture in
launching NewProduct™ CD would have been beneficial. Even secondary research would have
allowed NewCorp to evaluate the best medium for creating awareness within the target market.
Although costly it is thorough research that best prepares a new product for launch. If NewCorp had
only followed the NP/4P Paradigm, described in Dr. Michael Latta’s Health Care Research: “The
NP/4P Paradigm. Dr. Latta illustrates a research model for developing new product/drug launch
strategies using a pre-launch, four phase program that is totally supported by qualitative research.
Dr. Latta’s model aims at “maximizing new product awareness, early trial and adoption success in
the pharmaceutical marketing place” (Page 1). If only NewCorp had invested more time and money
from the onset of their NewProduct™ CD, by following the four phases which include, the research
phase, surveys to develop an accurate model of the current market and potential market share,
database clustering to gather the physicians who are most likely to be early adopters, brand loyalists
or late adopters, and lastly phase four, the capstone phase, qualitative evaluation of the data
generated from the last three phases, enabling a position and strategy to be determined for
NewCorp’s NewProduct™ CD. For such a tremendous product, NewCorp failed to utilize the
resources available to them to better position and promote their product.
Before launching NewProduct ™ CD, NewCorp should have conducted samples and trials
on the market to generate responses, thus collecting more indispensable information. All the
gathered information would have allowed NewCorp to decide on what image and position to market
their new product at as well as other design tactics and details including the ad campaign. The final
stage of NewCorp’s NewProduct™ CD development process is the actual launch of the product
which would have been more successful had they combined it with different forms of effective

4. Dougherty 4
advertising and sales promotion tools to make the consumers aware that the product is available. It
is marketing strategy that provides target markets and segments with information and awareness of
a new or existing product. NewCorp’s ad campaigns, although extremely informative because of
their sound facts failed to supply their consumers and physicians with an awareness of their product.
To save money, NewCorps’s management originally decided to use the same ad campaign
for physicians and consumers. Televisions campaigns are designed to visually illustrate the brand’s
scientific claims and establish links with parents and physicians alike. Television is a primary
medium to reach a large number of the population quickly and cost effectively. “Primarily
advertising is chosen because it provides the kind of reach and presence among existing and
potential customers that other promotional options cannot. The reach that advertising gives you can
be put to very good use if you have something new to say or a new brand to introduce” (Pmlive.com
1). NewCorp had the opportunity and ability to do more then just deliver the facts, they had the
opportunity to reach and gain presence among potential customers and physicians in order to help
build and maintain a relationship The messages used in NewCorp’s television and print ads were
specifically designed to highlight how the product’s unique formula makes it the only single-agent
dose proven effective all day long. In addition to differentiating their product from other ADHD
medications, NewCorp should use television advertising to inform and educate consumers about
ADHD in laymen’s terms that they can be understood by parents and physicians alike. Television
ads should disclose important information about NewProduct™ CD, who should or should not
consider this drug, potential benefits, and potential risks. By not using medical jargon or scientific
language, it will save physicians time and resources they are currently exhausting having to explain
information on advertisements. The ad can also be an effective way to make an announcement or to
motivate people to seek alternatives to their plan, such as their website. Television advertisements
can also be used to create trust in NewCorp’s NewProduct™ CD, by using highly respected and

5. Dougherty 5
admired physicians within the ADHD field, affirming the facts, including that 81% of patients
improved on NewProduct™ CD.
Printed marketing advertisements in the crowded magazines such as People are not an
efficient means of reaching and informing the target market. Rather NewCorp should strategically
place advertisements in magazines that subsequently have articles by key opinion doctors in the
field about ADHD and an evaluation of current treatments, as well as NewProduct™ CD and its
unique attributes and its advantages over the competition. Often times, physicians are inclined to
author such articles for the credibility and notoriety. Such magazines would include Good
Parenting and other magazines that are more often read by parents.
In addition to advertisements and articles which are able to create high impact to a mass
audience quickly, creating association with respected organizations and support groups will create
brand credibility and awareness. Informing consumers about NewProduct™ CD’s existence and
highlighting the benefits will create good publicity. Sponsorship should have been an integral
method of the development of NewProduct™ CD’s marketing strategy. NewCorp should sponsor a
variety of lectures and information sessions aimed at parents of ADHD children. NewCorp also
should have associated itself with several tutorial programs for children suffering from learning
disabilities such as ADHD.
In addition NewCorp was able to reach physicians through a series of lectures and
conference on ADHD and an evaluation of the current treatments. Another way to reach physicians
is through informative leave-behinds, such as brochures and creative promotional tools. One of
NewCorp’s promotional tools is a bouncy ball with their name and logo on it. The bouncy ball
would represent children with ADHD, and the logo promotes their name and the reason for taking
NewProduct™ CD. These associations will enhance credibility and status as the unique non-

6. Dougherty 6
narcotic alternative. Positive predisposition to use and favorable attitudes towards NewProduct™
CD are subsequently developed through these relationships.
NewCorp will also utilize the internet since post-launch research showed that parents get
most of their information through the internet. Extending into the internet, NewCorp should involve
itself with websites such as www.parenting-child-development.com and homework help websites.
NewCorp can also utilize the internet to advertise through banners, online newsletters, support
groups for parents with ADHD children, and online magazines about parenting, such as the ones
used by parents now including, Health.com, Medication.com, and WebMD.com Through the new
integrated marketing campaign involving influential advertising and developing valuable
associations, NewCorp will be able to create strong customer awareness and credibility as the
unique non-narcotic, dual release ADHD medication.
6 months post-launch NewCorp conducted research among 50 parents of children with
ADHD in 5 cities around the county only to find that none of these parents were aware of any new
products at all. NewCorp was able to find out post-launch how parents were made aware of new
products. Research also concluded that if parents were made aware of a better alternative to their
child’s current treatment they would ask their doctors for more information and would insist on
knowing whether it was an appropriate treatment for their child. This information is extremely
valuable to positioning NewProduct™ CD, but should have been acquired and utilized during pre-
launch of this product. The post-launch period

7. Dougherty 7
References
Advertising and Branding: Pharmaceutical Marketing. www.PMLIVE.com. February 04, 2004.
September 18, 2004.
Drugs.com www.drugs.com Microdex Consumer Data. July 28 2004. September 14, 2004.
Latta, Michael. Dr. The NP/4P Paradigm. Healthcare Research. Uirk’s Marketing Research
Review. June 2001.
Virtue, Jeannie. The New ADHD Drugs: How ADHD Drug Manufacturers are
Competing in a Highly Profitable Market. http://www.add-adhd-help-center.com to
September 14, 2004.