Zyrtec-OTC: Competitors and Complementers - PowerPoint Presentation Example

Zyrtec-OTC Competitors and Complementers As a nasal decongestant, pseudo ephedrine Zyrtec has some competitors that have been around in the marketas generic drugs such as Claritin and Allegra, but there are also classified or prescription drugs. The idea of Zyrtec to go on the generic is to meet market demand for more generic drugs. In order to gain comparative advantage over the competitor, Zyrtec may need to consider incorporating between the six imperatives marketing strategies of winning over the competitors and four principles of complementers. The six imperative marketing strategies that can be used against the competitors are: Determine or recommend the market; Identify the target market and market segment; Set strategic direction and positioning; Design what Zyrtec offer; Secure support from other functions within the company; and Conduct market monitoring, control, execution, and performance The four principles of complementer, on the other hand, are: Selective and concentration Customer value Differential advantage, and Integration In a competitive market, one can gain that comparative advantage by complementing the imperatives with the principles. For example, determine or recommend the market and identify the target market and market segment can be complemented by selective and concentration. Identification of target market and market segment and setting the strategic direction and positioning can be complemented by customer value. Setting strategic direction and positioning and designing what product to offer to the market can be completed by differential advantage. And securing the support from other functions within the company and to conduct monitoring, controlling, executing and performing can be complemented by integration. Pharmacology market is severely competitive. The saying is, “If you snooze, you lose.” Therefore, we cannot lose tapping on what the competitors are doing. But first, focus on direct competitors, evaluate them, analyze their activities, sales and marketing; analyze their suppliers, where do they get their raw material. Competition is not limited to competitors but also buyers. No company can be successful without the buyers. In addition, we need to consider whether to integrate nationally or to go global, taking into account the trend of globalization in which this phenomenon may help to expand the market. This venue helps Zyrtec to learn from the competitors’ marketing strategies, be innovative and creative in developing new marketing strategy that is more eye-catching and yet, can make the sales. Additionally, take into account whether the marketing strategy should be passive, active, reactive, or proactive. In this case, for a new product, the strategy that can be effective to use is active and proactive. However, in conducting marketing, it is important to consider is ethics. Ethics is not only to be considered when developing the drug but also in marketing. Consider the legal impact of marketing Zyrtec with mismatch information or when it is lavished with misleading views. The cost of legal litigation is the safeguard in marketing. Be prepared for any conflicts as the ripple effect of the launch of a new drug. And finally, consider whether to form market collaboration to reduce the cost of marketing. In order to be competitive, the company needs to consider the following framework: (1) Identify who are the competitors (2) Describe what the competitors’ abilities are, what difficulties they have faced when they launched their new drug (3) Evaluate other options of their marketing strategy (4) Project or predict what are their next marketing strategy would be either in short-term, medium-term, or long-term. The above framework cannot be achieved if there is lack of understanding about the competitors’ insights - their perspectives and their uniqueness or niche. Knowing the competitors insight is crucial. It is a way to understand the customers’ demand, needs, and this makes the company to be able to retain the customers. Deciding how to use effective marketing strategy requires the understanding of the structure of competition. This structure includes direct and indirect competition, new entrants into the market, buyers, and suppliers. Competition, defined by customers, is who offers similar values and benefits. In the effort to reach the customers, direct competitors would target the same target market or market segment with similar customer benefits and values the company is offering such as similar products, similar benefits, similar technology, and similar business model. Indirect competitors, on the other hand, would target the same market or market segment with similar benefits and values to the customers the company is offering but offer different products, different technology, and different business model. Kodak, for example, provides images as customers’ benefits and values. Its direct competitors are Fuji and Agfa while its indirect competitors are HP and Sony. Another example is Disney World. Disney offers the customers Family Fun and its direct competitors are Universal Studio or Bush Gardens and indirect competitors are beach and ski vacation, Mercedes Benz, BMW, etc. Airline industry provides the same values and benefits to the customers but different direct and indirect competitors. For example, Southwest Airline. Its direct competitors are Regional Airline and American Airlines while its indirect competitors are telephone, email, and video conference. Email, telephone, and video conference reduce the customers’ desire to travel with the airline. Competition poses threat to the company. Therefore, it is essential to identify the threats by first, consider the timing of the competition both recent and future, and the types of competitors, either direct or indirect competitors. To reduce these potential threats, learn to more the potential competitiveness. Besides having direct and indirect competitors, the company also have internal competitors such as from different functions within the company either constant or by chance. No company competes without causes or sources. Internal competition is often resulted from available resources while external competition may be the result of the emergence of multiple products with similar values and benefits as customers’ needs and demands increases. There are ways to describe competitors. This can be described by researching such as: What competitor data should the firm collect? This includes level often for example corporate business units the markets and market segments What types of data should be collected whether using qualitative or quantitative method. What sources of data available for example secondary data or primary data What process should the company use to secure such competitive information What frameworks can the firm use to describe their competitors Research for data can be collected to internally or externally. The data to be collected service availability, image and reputation, selling and relationships, and other general information. Then you can collect sources of information from the internal and external sources. Besides gathering internal and to external information about the competitors, it’s also necessary to do analysis about the competitors’ intelligence department, competitive intelligence system, shadow system, review the competitors’ financial information such as profit and loss, their formal development, strategic plan, and how they are gaming with multi-functional teams. There are several ways that can be used to describe your competitors. For example, analyze their mindset or assumptions such as their strengths and vulnerabilities, assets, capabilities and competencies; their organization from infrastructure, to processes, culture; their current strategy, performance, future strategy and compare them with those of the industry. These also include value chain, alliances, and networks. In addition, in analyzing the competitors, for example, framework of analysis may include: Competitors’ organization such as: Infrastructure, which is on a structure that defines roles and responsibilities or each function. Processes, which is the competitors information, their control and reward systems. Culture, which is the norms, standards, beliefs, and values that determine how the people in the company operate and a Strengths and vulnerabilities, including: Assets and liabilities, which are financial information, other information about the company organization, human resources, political view, and capacity. Capabilities and competencies such as activities that make the company to be a outstanding in the market among their competitors The companies environment such as Value chain, which includes major marketing projects the competitors do and how these activities have an impact on the both the buyers and the suppliers. Alliances or networkings are the link between the competitors and other companies and the company itself Mindset. Each firm has been established two carry its own judgments and assumptions. Current strategies and performance may include: Market strategy. You need to observe what the competitors do in the market Obtain sources of commitment for expansion of factories or existing plants, building new manufacture, increase or invest in research and development or other commitment to various businesses Use performance to the measure the competitors’ successes by analyzing their market, financial performance and other measures. As in ethics, competitors ‘data need to be secured from the level and type of data from the external or the internal access of those who are not classified, the information should be stored properly in a secured place to protect it from any leakage. Always pay attention to what the competitors are doing, compare to the company’s initiative. Evaluate and analyze the competitive assessment and such as customer requirements for easy product and its availability, prices, product ranging and assess whether the manufacturer has efficient manufacturing and distributing systems. Competition is like a game and you gamble on it. For example, you gamble about the price of Columbian Coffee and Wharton Coffee. In this case, you can use several scenarios, but first, determine what types of scenarios you are going to choose. Is it emergent, unconstrained, or constrained scenarios? Then you need to determine which scenario is effective – articulate plot and logic, internally consistent logic, specific time frame, or decision/action orientation. But to incorporate these scenarios, consider also the end state, the plot, the driving forces, and the logics. While competing, try to evaluate and yet manage the competitors at the same time by giving pre-emptive signals, warning signals, using a strategy of tit-for-tat, or even send misinformation. Competitive assessment and analysis is a powerful tool for marketers to control the competitors. Like a game, you gamble, develop a set of robust scenarios where you can measure the competitors. Competition can be complemented as a marketing strategy. Complement, by definition, is any effort that influence the company’s marketing strategies that have direct impact on sales. Things to consider when to use complements are, as quoted from the course note: Who are our current competitors (today)? Potential competitors (tomorrow)? Who are our direct competitors? Indirect competitors? What are our competitors’ capabilities and difficulties? What are our competitors’ strategic options? What do we expect our competitors to do? How can we get our competitors to do what we want? In their abstract, America, Rommes and Obbink (2004) indicate that complementing the competitive marketing effort would show how consumers’ choices can be influenced by marketing strategy. Competition in the global market is getting to be severe; therefore, forming alliances helps the company to strive in this competitive market, can tap into the market share, and can improve profits (Doz & Hamel, 1998). Alliances come either vertical or horizontal. Vertical alliances exist across market segment and it can help to keep the new entrants off the market. Horizontal alliance, on the other hand, can enhance product differentiation. In fact, competitors and compementers, which can be achieved through this alliance help the company to exploit new opportunities in the market; can contribute to greater products and services differentiation, as mentioned; and helps the company to gain greater comparative advantage over its competitors. This process of strategy also helps the company to raise market attractiveness. Company will have quick access to market channel or distributors and can distribute the product quickly to the consumers directly. Doz & Hamel (1998) question, why “do competitive races for access to new markets lead to alliances?” (p. 46). Because it leads the company to exploit its specialization, and by using more sophisticated knowledge, it helps the company to explore the new opportunities and in an “unfamiliar new markets: (ibid). The trends of market failure cause the company to review its hiring process. Some companies have gone through the process of attracting more skillful and knowledgeable employees in a wider range. They are even begun to consider the importance of home-grown production. For example, by forming alliance with local partners, global companies are able to tap into the local market. Local companies, on the other hand, are able to have access to the global market through their global partners. Indeed, it is a stepping stone for them to enter into the global market. Similarly, forming alliance allows the partners to complement each other’s knowledge, skills, and resources (Doz & Hameel, 1998; Austin, 2000). References 1. Austin, James (2000). The Collaboration Challenge. San Francisco, CA: Jossey-Bass 2. Doz, Yves L. & Hamel, Gary. Business & Economics. Alliances Advantage. Boston, MA: Harvard Business School Press. 1998. 3. Hitti, Miranda. FDA OKs Over-the-Counter Zyrtec - Allergy Drug Zyrtec May Be Sold Without a Prescription. WebMD Medical News. Reviewed by Louise Chang, MD, 2007. http://www.webmd.com/allergies/news/20071119/fda-oks-over-the-counter-zyrtec. 4. Kotler, P., Cunningham, P. & Armstrong, G. Principles of Marketing. Canadian Edition. New York, NY: Prentice Hall. 1999. 5. America, Pierre., Rommes, Eelco. & Obbink, Hendrick. Multi-view Variation Modeling for Scenario Analysis. Software Product-Family Engineering: Lecture Notes in Computer Science, Volume 3014/2004. Springer Berlin / Heidelberg, Online. March 22, 2008 from http://www.springerlink.com/content/2fne0ddeue7g0hln/ Read More