The document discusses product mix strategies and decisions for pharmaceutical companies. It defines key terms like product, product line, product mix, brand, and brand name. It also outlines three levels of a product and discusses decisions around packaging, branding, product lines, and a product's life cycle. The strategies described for each stage of the product life cycle are to expand markets in the introductory stage, sustain growth through promotion in the growth stage, maintain market share in maturity through pricing or innovation, and withdraw poorly performing products in decline.

1. PRODUCT MIX
Decision and Strategies
BY: GROUP 3

2. Objectives:
To explain the meaning of such terms as
Product, Product line, Product Mix, Product’s
position, Product life cycle, Brand, Brand Mark,
Brand name, and trademark
List down the drug products according to
product line and product mix width
Illustrate by way of a diagram, the product life
cycle and describe the characteristics and
strategies of each stage

3. PRODUCT
Is anything that can be offered to the market
for attention, acquisition, use, or
consumption that might satisfy and delight
the needs and wants of the target clientele.

4. Product Planners
- Also called as brand associates, brandmen,
and product managers

6. Three levels of a product:
CORE
Most basic in levels.
product is NOT the tangible physical product. You can’t touch it.
That’s because the core product is the BENEFIT of the product that
makes it valuable to you.
ACTUAL
Product is the tangible, physical product
AUGMENTED
product is the non-physical part of the product. It usually consists of
lots of added value, for which you may or may not pay a premium.

7. Product Formats
All drug products that are available in both
traditional and nontraditional markets and
manufactured by either the local or multinational
drug companies

8. Brand or Generic
Name Decisions

9. Brand
-is a name, term, sign, symbol, design or combination
of these intended to identify the goods or services
one seller or group of sellers and to differentiate
them from other competitors
Brand Name
-part of brand that can be vocalized- is utterable

10. Brand Mark
-a part of a brand which can be recognized but is not
utterable such as symbol, design or distinctive
coloring or lettering
Trademark
-brand or a part of brand that is given for its legal
protection
Copyright
-exclusive legal right to reproduce, publish and sell
the matter and form of literary, musical or artistic
work

11. Blanket Family Name

12. Blanket family name
Policy that are followed by many drug companies.
REASON
Cost of introducing the drug product will be less
because there is a brand name already widely recognized,
accepted and preferred by target consumers, hence no
need to spend readily on advertising and other
promotional activities

13. Blanket family name
Example is the enervon family comprising of
enervon c tablets, enervon c drops, enervon c liquid,
and now enervon HP Powder chocolate and vanilla
flavors that gets instant recognition because of the
popularity of the brand name enervon.

14. Brand extension decision
Is any effort to use a successful brand name to launch
new or modified products.
Example is the neozep tablets, neozep syrup, neozep
otic, neozep nasal spray, neozep medicated cod rub. It
used the strength of neozep, popularly known as “cold
specialist” and the brand extension saves the company
the high cost of promoting new brand names for the
products.

15. Multibranding decision
In this strategy, the seller develops two or
more brands in the same drug product
category or the same generic equivalents.

16. ADVANTAGES:
 More shelf space at the selling area of drug outlets.
 Very few consumers of a drug product are that loyal to a
brand they will not try to another company.
 Creating new brands develop healthy competition within
the manufacturers organization comprising several
product division or subsidiary companies.
 Multibranding strategy positions brand on different
benefits and appeals and each brand can attract a separate
following when positioned in several target market
segments.

17. Packaging Decision
Packaging a marketing activity of creatively
designing and producing the container for a drug
product suitable to target markets relative to
competitions product.

18. Primary package is the products immediate container for
example the bottle holding allerin expectorant and its
corresponding label is the primary package
Secondary package the packaging material that protects the
primary package and that is thrown away when the drug
product is about to be used by the target clientele, it is the
cardboard containing the allerin expectorant is the secondary
package that allows for additional protection and promotion

19. Shipping package used primarily to store, identify,
and ship the product to target markets, the
corrugated box that contains the allerin expectorant is
a shipping package. Labeling is part of product
packaging and consist of printed information
appearing on or within the package in accordance to
BFAD Labeling Guidelines.

20. Packaging is highly important and valuable
marketing tool for drug products.
 Many of these Rx products are either ethical-OTC, semi-OTC
or OTC classified already by the consumers themselves who
frequently buy the product and since there are no complaints or
reprimand whatsoever from the BFAD inspectors the habits
become accepted practice in the drug industry.
 BFAD admittedly lacks monitoring teams to go around the
thousands of drugstores all over there country on regular basis.
 It has become very costly a doctor for minor infections and ask
for a prescription of an antibiotic preparation, which are readily
available anyway in all drugstores without a prescription.

21. Presently, drug products either generic or branded, OTC or
ethical oriented consider several different package designs for
new and existing product lines, selecting the best balanced
choice,
 That will satisfactorily cater to the needs of
drug outlets in terms of convenience and ease
of handling
 That end users will favorably respond to at
short notice
 Physicians and dentists to prescribe with higher
confidence

22.  Pharmacist and allied professionals will readily
endorse out of a high quality perception of the
drug product
 That will generate greater products awareness,
immediate trials and repeat purchases associated
with the distinct and unique power of good
innovative packaging.

23. PRODUCT LINE
DECISION

24. A product line , according to kotler, is a group
of products that are closely related, either
because they are:
(1) function in a similar manner,
(2) are sold to the same customer groups,
(3) are marketed through the same types of outlets,
or
(4) fall within given price ranges.

25. Product Mix Decisions
Product mix or product assortment, is the set of
all product lines and items that a particular seller
offers for sale to buyers.

26. Anti-infectives Cough-Colds Analgesics
Antipyretics
Vitamins-
Minerals
Anti-TB Steroidal
Antihistaminics
UL Amoxicillin line UL Anti-cold UL Paracetamol line UL Ascorbic acid line UL Pyrazinamode line UL Chloramphenamine Maleate
UL Ampicillim line UL Bromhexine Line UL Diclofenac
sodium 50mg
UL Thiamine line UL Rifampicin
300/450mg
UL Dexamethaspne
PRODUCT LINE
LENGTH
UL Chloramphenicol line
UL
Dextromethorphan
UL Mefenamic acid
500mg cap
UL Ferrois fumarate
tab
UL Isoniazid INH UL Prednisolone
UL Cotrimoxazole line UL Guaifenesin line UL Ethambutol INH
UL Erythromycin line
UL Gentamycin line
UL Penicillin G line
UL Tetracycline 250mg tab
UL Penicillin VK line
PRODUCT WIDTH

27. Pharmaceutical
Product Life Cycle
Strategies

28. Characteristics:

29. INTRODUCTORY STAGE
Is a period of very low sales performance during the first few months to
one year or more after being formally introduced into the market
depending on the degree of awareness level acceptance, and actual
product trials.
Profits tend to be negative or at least break-even from one to two years
because of the low sale outputs, low production, high promotional costs,
and other marketing-related expenses.

30. GROWTH STAGE
A period of increasing sales and profit performance because
the new drug product has entered the growth stage.
It has also tremendously gained wide acceptance, patronage,
and repeat sales in bigger volumes from either the present or
new markets being served.

31. Drug companies still pursue an investment-spending
strategy for the product that has reached the growth
stage for a number of reasons such as:
 To preempt entry of similar competing products.
 To maintain or strengthen its market growth and share in
the on the specified market segment thereby marking it
doubly difficult for competition to come in or dislodged
the product.

32. The major strategies employed by drug companies to sustain
its rapid market growth in the target market segment are as
follows:

33.  Continuous improvement or innovation product.
 Entering completely new markets, new segments, expanded
distribution channels, more incentives for trade outlets to carry
and endorse the product to clients.
 Lowering prices to previous levels in order to allow more buyers
to shy away from competitor’s products and increase frequency
of usage.
 More aggressive and proactive promotions efforts.
 Fine-turning product’s position in the market or repositioning
competitor’s products in the minds of target consumers.
 Additional logistics support to fight head-on and cripple
emerging products of competition.

34. Drug companies protect their existing market positions
from inroads of competition by way of:
 Well-balanced marketing mixes
 Tactical and strategic marketing programs
 By periodically conducting marketing intelligence and
marketing research to adjust the fast changing needs and
wants of targeting markets.

35. MATURITY STAGE
A period characterized by the slowing down of the
product's sales volume reaching a plateau or
remaining at constant volumes which may be
attributed to many similar products competing in the
same market segment or significant competitor's
activities pouring in heavy investment-spending to
gain control of the desired market segment at all
costs.

36. STRATEGIES FOR
THE DRUG
PRODUCTS:
MATURITY STAGE

37. A. Roll-back of prices by way of additional discounts,
offering of product deals in the form of free
goods, additional allowances or subsidies, and
other amenities to encourage trade outlets to
support the product in terms of stock availability,
endorsements to end-users, and continuing
reorders at frequent intervals.
B. Increase advertising and other promotions support
for the product.
C. Increase R and D budgets

38. D. Periodically modify the market, the product and overall marketing mix, to
closely jibe with the fast-changing trends in marketplace, by means of:
1. Looking for new ways to increase product usage among existing
customers.
2. Looking for new users and market segments
3. Repositioning the brand to appeal to a larger or faster-growing segment
4. improving the attractiveness of the product by means of a new look in
packaging
5. Adding improvements to expand the product's usefulness, safety or
convenience
6. Implementing quality improvement towards increasing the performance
of the product
7. Offering new or improved services to valued clients

39. DECLINE STAGE
a period characterized by continuous drops in sales of
most product formats and brand, at a low level for many
years

40. STRATEGIES FOR
DRUG PRODUCTS:
DECLINE STAGE

41. a) When sales and profits continue todecline, companies immediately
withdraw from the market, phase-out the product to avoid further
loses in certain geographical areas or nationwide.
b) Reduce the number of product offerings, concentrate on potential
formats, sizes and supply
c) Discontinue operations in smaer market segments and marginal
trade channels.
d) Reduve promotions and overall marketing efforts and promptly
rechanneling resources to drug products either in the introductory
or growth stage.
e) Replace weak products with similar or related generic names or an
improved version under a new brand name and new positioning
scheme.
f) Sell drug product to another company or simply liquidate it at
salvage value.

44. Classifying the products in accordance to product life
cycle serves to accomplish the following:
I. Identifying products and related lines that are continuously
generating sales for the period of product review
II. Determine allocation of resources on products with
potentials for growth
III. Match or pinpoint direct ompetitors products for market
growth and market share leadership

45. Product Life Cycle
Characteristics

46. INTRO GROWTH MATURITY DECLINE
Sales
performance
Low High Steady Very low
Market growth High Very high Steady Very low
Market share Low High Low/high Very low
Profit Negative Peak level Declining Low/ zero
Cash flow Negative Moderate High Low
Competition Few Growing Many rivals Declining
Customers Innovative Mass market Mass markets Laggards
Expenses Very high Very high Low/none Very low/ none

47. Product Life Cycle
Responses

48. INTRO GROWTH MATURITY DECLINE
STRATEGY Expand Penetrate Defend Efficiency
EXPENDITU
RES
High High Falling Low
EMPHASIS Awareness Preference Loyalty Selective
DISTRIBUTI
ON
Patchy Intensive Intensive Selective
PRICE High Lower Lowest Rising
PRODUCTS Basic Improved Different Rationalized

49. Definition of Terms