Marketing Plan: The Cambridge Science Pharmaceutical (CSP) - Essay Example

Marketing Plan Introduction The Cambridge Science Pharmaceutical (CSP) is an international healthcare organization that develops manufactures, and market health care products. Medicare products produced by this company include those that aim at treating metabolic disorders, immune deficiencies, and gastrointestinal among other acute and chronic medical conditions (“American Obesity Association …” 01). In the year 2007, this company realized over $25 billion in its sales. Barbara Printup is the CSP’s senior marketing director. She is the figure behind the sales success of most of this company’s products (Puhl 01). CSP successfully researched and manufactured a new prescription drug called Metabical. Printup success in marketing management made her to be assigned to be in charge of the launch of a United States’ product, which is the newest prescription drug in the market. This drug was to be launched in January 2009. Therefore, before then, Printup was required to develop viable positioning strategy and marketing plan for Metabical drug that this essay addresses. Summary Metabical was the first prescription drug to approve by FDA towards weight loss of among the overweigh people. Cambridge Science Pharmaceuticals (CSP) manufactured this drug after series of research work. During its trial, the majority of participants achieved their weight loss goals within twelve weeks of using the drug (Puhl 01). Despite the success of the drug especially in weight reduction, the pricing of the drug had not been finalized. However, its preliminary consumption price was estimated $3 to $5 per day per person with the duration of treatment lasting approximately twelve weeks (“American Obesity Association …” 01). The CSP had used a lot of money in manufacturing the drug and conducting its viability test; thus, it is vital that Printup should develop the best positioning strategy and marketing communication plan that would lead to effective sale of the drug in the United States. Moreover, the plan must be long term and should achieve great steady demand for the drug. Therefore, there are needs for optimal targeting, segmentation, and positioning of the drug in order to achieve this marketing goals and objectives (“American Obesity Association …” 01). In fact, there is a need to assess the current marketing communication strategy and develop a timeline towards meeting these key objectives or activities before the launch. Certainly, developing an effective plan requires identification of the ideal target customers, key decision, and their roles, the accessibility of the key decision makers, the language to use, support programs, programs distinct roles, and the optimal rollout of the key marketing communication activities. Problem Identification Overweight is considered as a health problem within the America public healthcare. It is approximated that about 65 percent of the adults in America are overweight, obese, or critically obese. Notably, overweight often results to different, numerous health complications. The report released by the America Obesity Association in the year 2005 indicates that overweight is “the second leading cause of preventable death in United States (“American Obesity Association …” 01).” Other than the health risk factors associated with overweight, overweight has numerous social and ethical effects to the victims (“American Obesity Association …” 01). In most cases, overweight individuals often endure significant social stigma and outright discrimination. There has been a growing stereotyping over the overweight individuals. Most people associate overweight people with laziness as well as self-indulgence. The majority of the overweight persons often feel that they are social outcasts (Puhl 01). Moreover, their professional lives are sometimes affected negatively since overweight sometimes affect job hiring decisions, promotions, and wages. A person can be considered overweight through some physical diagnosis. Health care professionals and researchers often measure excess weight in an individual through body mass index (BMI) scale. The scale measures the relationship between the body weight and height of an individual. The result obtained is often associated with body fat and health risks. This scale is best applied in both men and women. BMI is categorized into three classes describing excess weight in adults: (25 to 30) overweight, (30 to 40) obese, and (over 40) severely or morbidly obese. According to the statistics if the year 2002, the CDC National Center for Health Statistics estimated that, adults between the age of 20 and 74 were overweight. Overweight is associated with numerous health risk factors including coronary heart disease, breast and colon cancer, stroke, endometrial, gynecological diseases, sleep apnea and respiratory diseases, liver diseases, and hyper tension among other medical conditions (“American Obesity Association …” 01). Globally, people get fatter almost daily. In the 2005, a population of over 1.6 billion adults was diagnosed with overweight body condition while over 400 million adults being obese (Puhl 01). The World Health Organization has predicted that, globally, over 2.4 billion adults are projected overweight by the year 2015 and over 700 million of this population will be obese. Market Analysis Market Survey In the year 2007, an extensive market survey was conducted in America. The survey included one thousand women and men of age ranging from 18 to 70 year old. Their BMIs was found to be between 25 and 29.9. This survey was conducted from different socioeconomics levels. The main objective of this market research or survey is to understand the behaviors of the customers to establish their wants and needs (Puhl 01). The results of the initial survey indicated 70 percent of the participants were never satisfied with their current weights. On the other hand, 35 percent of the participants were actively engaging in activities geared towards losing weight. However, 15 percent of the surveyed population noted that they were comfortable using weight lose drugs towards meeting their weight loss goals (“American Obesity Association …” 01). After introducing and describing the benefits of Metabical drug to the participant, 12 percent of the targeted sample population immediately accepted to use the drug. The survey further revealed that different genders were not satisfied with their current weights in different ways. 65 percent of men and 75 percent of women mentioned that they were dissatisfied with their current appearance and weight. Of this population, 30 percent men and 50 percent women visited health care centers annually for physical tests (Puhl 01). The survey further indicated that 40 percent men and 55 percent women intended to change their behaviors towards a healthy lifestyle. Quantitatively, 60 percent women and 30 percent mean revealed that, for the last five years, they have tried to lose weight, but they have failed. Further results indicated that 65 percent and 35 percent of the sample population were not satisfied with their weight loss options that are currently in the market for women and men respectively (“American Obesity Association …” 01). From the data pool, the education levels of the respondents were at 75 percent holders of college degree and 45 percent holder of high school diploma certificates. Therefore, they were all aware of the health risks associated with being overweight. Based on the report from the respondents, 65 percent of 18 to 35 year old sample population wished to lose weight so they could look better while the other percentage (35 percent) within the same age group wished to lose weight so they could improve their overall health (Puhl 01). Of the respondents aged 35 years old and above 40 percent wanted to look decent while 50 percent wanted to improve on their general health. The survey revealed that the use of drug prescription to lose weight depend on the income. Only 5 percent of the population of income below $40,000 would use prescription weight-loss drugs compared to 11 and 20 percent of income between $40,000 and above $80,000 respectively. From the results of the survey, there is a need to for better weight loss drug. Notably, the drug must be safe and proved to lead to a healthy lifestyle (Puhl 01). Market Research The statics between the year 1976 and 2000 strongly indicate that there is a steady increase in the percentage of obese and overweight adult population in the United States. By the year 2000, 34 percent of the American adults were overweight while 25.8 percent and 4.7 percent were obese and severely obese respectively (“American Obesity Association …” 01). Notably, there was an indication of a steady rise in the cases of obesity and overweight across all gender; however, the high increase was noted in the ages between 55 and 64 year old with prevalence intensifies among men than women. From the statistics, it is apparent that obesity is inversely proportional to levels of education and income (Puhl 01). This obesity surveys have led the health care providers to advocate for the dire need of weight reduction measures so as the American citizens may lead a healthy lifestyle. In fact, the health care had even produced drugs that would assist citizens to cut weight other than banking on health or recommended diet and physical exercise (Puhl 01). Moreover, the American psychometric segmentation on overweight indicates that most of the American citizens below that age (30) think or hold that overweight leads to low self-teem and unrealistic expectations. Moreover, persons within the ages of 25 and 40 are willing to alter their behavior towards losing weight. SWOT Analysis The SWOT analysis is a strategic planning method for evaluating business’ strengths, weaknesses, threats, and opportunities (Ferrell and Hartline 89). The SWOT analysis enables the business to monitor the external and internal marketing environments. Strength of CSP on its New Drug, Metabical The from the research survey, the CSP’s Metabical drug is superior to any other drug in the market towards solving the weight loss problems. Notably, prescription drug, Metabical is the first prescription drug to be approved the FDA for the overweight problems. Other than being effective in cutting weight, the drug is less harmful (“American Obesity Association …” 01). Moreover, the drug works in a low dose formulation thereby reducing changing chances of user being affected by stress, heart failure, and liver problems among others that might be caused by the drug. Other weight loss drugs often produce these effects. The drug also has controlled features that are suitable for it is used only once a day for a period of up to twelve weeks. In addition, the drug has the capacity of changing an individual’s eating habit, towards healthier eating. Thus, the company must concentrate on these strengths when formulating the marketing plan for Metabical drug. Weaknesses Metabical has some negative effects that are related to excess calories and fats in the diet. Side effects related to the consumption Metabical only manifest themselves if the user consumes high level of calories and fat contents. Additionally, the drug is not quite effective in reducing or cutting weights of person with RMI of 30 or more. In evaluating the weaknesses, the marketing plan must think of ways to address these weaknesses. Opportunities The larger percentage of the American population is Overweight; notably, overweight is a health crisis in the United States. The large, overweight population that grows steady will provide a constant market for Metabical drug (“American Obesity Association …” 01). Moreover, up to the year 2008, there has been only one FDA approved drug, Alli. To this effect, Metabical has no stiff competition in the target market. The market research indicates that people are ready to lose weight towards health style. The need of people creates Metabical drug a ready market. Threat The main challenge facing CSP is that there are numerous overweight drugs safety concerns. In fact, the company had been once accused of deceptive marketing that dampened product enthusiasm. These claims had once damaged the credibility of this company; thus, gaining customers’ confidence on the use of this drug might prove to be a challenge. Additionally, the increase in the dietary supplements as well as the herbal products seems to a threat especially due to FDA unregulated conditions that have led to some defective products that have led to sudden death have reduced people confidence in using weight loss drugs. However, the marketing and communication strategies must aim at addressing these issues towards winning the customers’ confidence. Market Target A viable positioning strategy can only be developed by determining the right market for the product. In 2007, CSP conducted comprehensive market survey on the overweight individuals and market analysis as well as psychographic segmentation. From these surveys and analyses, it is apparent that women are the most distinct segmentation. Therefore, the most suitable target market for Metabical drug can be summarized as below: 1. Specifically for overweight persons with BMI between 25 to 30 2. Women with age between 25 to 65 3. Women with income between $50,000 to $80,000 4. Women with college education and above 5. Persons concern with health factors due to overweight and activity trying to cut weight 6. Persons willing to change their current behavior towards healthy lifestyle Marketing Communication Strategies The communication strategy in weight loss drug must address all the persons involved in the decision making process. Thus, the CSP’s communication strategy target two main areas including health care providers and direct consumers of the drug (“American Obesity Association …” 01). The communication strategy must also address the concerns of medical care providers; “the patient would regain weight after they stop taking the pills”. Moreover, the communication process must provide solution through Metabical and its support programs. Finally, the communication process must address the concern of losing weight since the customer “want to lose weight to feel better and live longer” (Puhl 01). It is important that the marketing communication strategy to be distributed within a specific timeline. The marketing communication activities for Metabical drug can be divided into two main periods: Marketing Communication Schedule February 2008 (year 1) January 2009 (year 2) 1. Advertising: this will at creating Brand Awareness and knowledge 2. Advertising: towards Branding the Image 3. Promotion and Public relation 4. Product Launch 5. Sales Force Road show on clinical information through sale Pharmacies Team 6. Continue Support program The above marketing activities must be budgeted for Year 1 ADVERTISING Push (Prescriber) Pull (Direct To Customer) Total Advertising $ 1,000,000$ 12,000,000 …………………….. $ 13,000,000 PROMOTION Development of Support Program Lunch & Learn Seminars / Other Promo Production of Support Program Training / Promotion Materials Direct Mailing To Health Care Providers Total Promotion $ 200,000 $ 600,000 $ 2,000,000 $ 500,000 $ 200,000 -------------------- $ 3,500,000 PUBLIC RELATIONS Medical Education Meeting and Event Press Release / Materials Total Public Relations $ 3,500,000 $ 800,000 ……………………. $ 4,300,000 Market Research Sales Force Allocation Product Management Allocation $ 600,000 $ 1,491,000 $ 255,000 TOTAL BUDGET $ 23,146,000 Advertising The advertising must take the push and pull direction. The push and pull is the most effective advertising technique in the drug industry since it advertises directly to customers. This new phenomenon will be applied in line with FDA requirements. Notably, the first year advertising will intense and aggressive to create product brand and knowledge awareness. The advertisement means will include television, radio, online (websites), and press conference particularly during the launch (January 2009). In order to achieve the object of the advertisement strategy, the advertisement must have the tagline “Losing weight is tough you do not have to do it alone. Let Metabical and your healthcare provider start you on the road to a healthy weight and a better lifestyle” (Puhl 01). Moreover, the advertisement should also target the professional medical fraternity. Some advertising mode within this area may include printed ads that will include leading medical publications and online interactive ads both of which must highlight the benefits of the drug. Such ads should contain the tagline “empower you patients to lose excess weight by introducing Metabical (Puhl 01).” Promotion and Public Relation Promotion and public relation will also aim both the consumer and health care providers. Before the launch, sample reply cards and pamphlets should be mailed to the 100,000 health care institutions as a means of mail campaign (Puhl 01). The global market should also be targeted, which is achievable through viral marketing techniques that include internet sales, other social networks including blogs, twitter, and Facebook. These techniques will create buzz for the drug. Additionally, there should be a weight loss competition among or between customers. The person who registers faster weight loss when using the drug should be rewarded. Sale Force There should be effective sales representative to promote the drug to the medical providers directly. This aims at creating product knowledge and benefits to the targeted groups. The number of the sale force should be enough to cover the 100,000 health care centers effectively and promptly. Pricing and Distribution Strategy The distribution of this drug will be through drug stores, specific stores, and through health care providers among other outlets. However, the success of Metabical will depend on its price (“American Obesity Association …” 01). Effective pricing will only be arrived at after analyzing the pricing model of the competitor. Since the company has succeeded in winning the trust of the consumers on this new prescription drug, then there is already a ready; therefore, paying more above the competitor’s price will never be a challenge; nonetheless, there should be price stimulation (Puhl 01). Conclusion The marketing plan for this drug will only be comprehensive if it follows or considers a comprehensive and strong marketing communication strategy that focuses on the Metabical benefits and the brand awareness that is directly targeting the target group. Moreover, effective and a successful marketing plan must focus on the finding of the extensive market research and market survey as well as marketing communication strategies and the group findings regarding the drug or product to its final consumers. Therefore, this proposed marketing plan will be effective since, from the market survey, the product meets the consumer needs and the pilot test indicated that it was accepted among the majority of the participants. Furthermore, the product has been accepted with the standardization body, FDA; this also strengthens the product in the market. Therefore, implementation of this marketing plan for Metabical leads to substantial sale in America. In addition, there is growing market for the drug since the cases of overweight and obesity are steadily rising. Finally, the main advantage that Metabical drug has over its competitors is that it has fewer side effects, compared to Alli. Work Cited Ferrell, O C, and Michael D. Hartline. Marketing Strategy. Australia: South-Western Cengage Learning, 2011. Print. Puhl, Rebecca. “Understanding the Stigma of Obesity and Its Consequences.” Retrieved 4/1/10, from Obesity Action Coalition website: http://www.obesityaction.org/magazine/oacnews3/Stigma%20of%20Obesity.pdf American Obesity Association Fact Sheet” (2005, May 2). Retrieved 4/1/10 from American Obesity Society website: http://obesity1.tempdomainname.com/subs/fastfacts/obesity_US.shtml Read More