2. Success Story of Renagel
• Market share of Renagel in its category: 50%
• Strongly recommended by K/DOQI as first-line therapy for
patients with advanced CKD
• Covered and supported by virtually all the PBMs in the country
in a favorable tier that covered most of the costs
• Sales increased by 23.4% in 2006 (Growth stage)
• During the success of Renagel, no. of sales reps increased from
45 to 110
3. CHALLENGES
• Right now, Renagel is the market leader, and it’s really very well
accepted by nephrologists.
• Nephrologists feel very comfortable with it because they like the
degree of efficacy it brings to them in controlling phosphorus and also
the fact that it’s non-absorbent, non-accumulating.
• Self destruction of market leader
5. Cues from the Article: Eager Sellers, Stony Buyers
• New products often require consumers to change their behaviour. As
companies know, those behaviour changes entail learning, switching and
obsolescence costs.
• People irrationally overvalue benefits they currently possess relative to
those they don’t. The bias leads consumers to value the advantages of
products they own more than the benefits of new ones.
• People evaluate the attractiveness of an alternative based not on its
objective, or actual, value but on its subjective, or perceived, value.
• Consumers evaluate new products or investments relative to a reference
point, usually the products they already own or consume.
• Losses have a far greater impact on people than similarly sized gains, a
phenomenon that Kahneman and Tversky called “loss aversion.”
• The endowment effect: Loss aversion leads people to value products that
they already possess – those that are part of their endowment – more
than those they don’t have.
8. Launch Decision
Development in
2005
Concerns about
bicarbonate levels
Focus includes
stage 3 and stage
4 CKD patients
Clinical Trials -
Satisfactory
YES . The product should be launched as it worked
equally well in controlling phosphorus and lowering
cholesterol. In addition it maintained the bicarbonate levels
in stage 3 and stage 4 CKD patients.
10. –
• Cannibalization of sales of Renagel which is already the market leader
• Chances of Inventory pile-up of Renagel due to the introduction of
Renvela
• Genzyme did not have the approval to discuss the benefits of Renvela
for Stage 3 and 4 CKD Patients.
• It would not also help with the problem of Patent expiration which was
due in 2014
• Potential advantage to competitors if side effects of Renagel are
reminded to Nephrologists
–
• Increase in the consumer base – Stage 4 CKD patients 400,000
Stage 3 CKD patients 7500,000
• Better growth prospects in terms of capturing other relevant
markets, thereby contributing greatly to revenues
11. The product will be
positioned and marketed
such that it will require least
change in consumption
behavior of the patients.
Though the product is not
greatly different from
Renagel, it has a significant
value to CKD 3,4 and 5 stage
patients.
The idea is to sell this
product as an improved
version of Renagel having
better efficacy, and not as a
completely new product.
The product Renagel 2.0 will
be launched only after it
gets approval for marketing
its benefits for CKD 3 and 4
stage patients
12. Marketing Obj.
Situation Size-up
Market Matching Product & Tech.
Segmentation Possibilities
Product concept & target Market
(Positioning)
Product
strategy
Marketing
Sales force
Communicat
and
ion &
distribution service
Pricing promotion
Supporting Elements and Programs
Marketing Planning – Creating your Market launch Plan
13. Marketing Objective :
• To Launch a innovative product in line with the company’s strategy
• To target wide range of consumers in CKD curing market
• To effectively communicate efficacy of product for stage 3 and stage 4
patients.
• The product is set to be launch at slightly higher price ; so promotions should
be in line that portrays the benefits perceived to be more than price of the
product.
Market Segmentation :
• Stage 3 , 4 and 5 CKD patients
Product Concept :
• Advanced version of Renagel
• Maintains appropriate bi-carbonate level in stage 3 and 4 CKD patients
• Positioned as elixir for CKD patients
Pricing Strategy :
• Objective : Product quality leadership
• Method : Mark up pricing
• Strategy : Price Skimming(slightly higher than Renagel)
14. Product Differentiation:
Only product to cater all three CKD’s stages.
Can continue with name Renagel with slight modification eg: Renagel
2.0, Renagel Plus
Marketing Communication and Promotion:
Direct selling to experts
Promotion will be planned to minimize any apprehension due to increased
pricing.
Both direct-to-consumer & physician promotion
Sales force & Distribution
Increase Sales force
Train Sales force about new product
15. Suggestions :
• Experienced and professional sales organization work with physician to
make this transition as smooth as possible.
• Renassist - handles reimbursement assistance for patients.
• Direct-to-pharmacy awareness campaign that’s just getting off the
ground and will bring additional awareness to patients.
• Clinical consultant team - Group of individuals that works very closely
with renal dietitians across the country.
• Professional education materials as well as patient education materials.
