Positioning and Communications Strategy for a New Weight-Loss Drug Overweight Adults in the US - Essay Example

Positioning and Communications Strategy for a New Weight-Loss Drug Overweight Adults in the U.S. Introduction Cambridge Sciences Pharmaceuticals (CSP) defines an international health care institute that focuses on the development, manufacture, and marketing of medicines that aid in the treatment of immune deficiencies, gastrointestinal diseases, and metabolic disorders. The drug also aids in treating related acute and chronic medical conditions. In 2007, the company attained sales accumulating to $25 billion (Daniel 34). This was as a result of the vast experiences injected into the company’s marketing strategies by Barbara Printup. She was the company’s senior director of marketing. Her 20 years of experience in the industry as the marketing head of prescription drugs for the company helped it achieve these profitable heights (Friedhoff 45). In the recent past, she was responsible for leading six drug campaigns for the company’s most successful drug called Zimistat. Up-to-date the company has not had another successful drug in comparison to Zimistat. In this case, Barbara’s first order of business was developing a reliable positioning strategy and viable marketing communication strategy for the drug. In 2008, the company awaited patiently for FDA approval with plans of launching the product in the next year. Executive Summary Cambridge Sciences Pharmaceuticals (CSP) publicized a first of its kind prescription drug FDA approved drug tailored for moderately overweight individuals named Metabical. The company conducted trial on overweight participants who reached their expected weight loss goals in 12 weeks. Despite the delays in pricing, the company estimated the price of the drug as $3-$5 per day. The least treatment period covered 12 weeks. This report sheds light on the development of a reliable positioning strategy and viable marketing communication strategy for the company’s drug. First is the issue regarding obese and overweight individuals in the United States. This also helps in the analysis of the market surveys conducted by the company in determining the best market segmentation to target. The second emphasis is on the positioning strategy which uniquely identifies the company from other market players in the industry (Whitmore 12). This also aids in the identification of potential market targets. The third section is the SWOT analysis for the product. This identifies the potential strengths, weaknesses, opportunities, and threats for the drug. Thus, the company identifies the communication strategy to adopt in the advertising of the drug. The final focus is the most appropriate communication strategy that suits best the drug. This is advantageous as the company enhances better communication with the consumers. The company spent much money and time on FDA trials and in R&D in trying to decide on the most appropriate marketing communications strategy and positioning plan. Barbara was aware that so as to recover this lump sum investment, the drug required two issues addressed. These included the need for a steady, long-term demand, and a successful launch to attract customers. She reasoned that if the drug did not reach out and appeal to the customers, Metabical’s credibility would raise questions as the FDA approval would be of little significance. Barbara’s challenges came in the optimal segmentation, the positioning and targeting of the Metabical drug. After establishing this, she could now concentrate her energies on creating a time schedule for all major activities and assessing the current communicating and marketing strategies. The case studies helped her in posing several questions. These include: a. Who are the most suited target consumers? b. How are the participants going to get instructions from the company? c. Where are the participants coming from and how to contact them? d. What was the most appropriate message for delivery drafted for the participants? Problem Statement A summary of overweight and obesity issue in the U.S. In reference to Tamara Jinkens, a focus groups participant, she tried numerous diet programs and all new weight-loss pills in the market with none making any improvements. She continues to say that none of the methods seem to help her lose the extra pounds. She explains that with dieting, she is miserable as a result of the starving exercises. In addition, none of the prescribed weight-loss pills work. Although she may lose some pounds, she says that reaching her objective weight is a more taxing activity (Friedhoff 78). A negative result is adding more weight compared to the weight she intends to lose. She goes on to declare that she would take any measure to ensure that she leads a happy life free from the menace of obesity. Without their knowledge, the overweight focus group participants continued recounting their long struggles with losing weight. In the audience, Barbara Printup listened carefully as the group shared their experiences. She was the senior director for marketing strategies at Cambridge Sciences Pharmaceuticals (CSP). Recently, she was appointed as the head of marketing of an upcoming United States market product launch of the company’s newest drug. Metabical, a prescription drug had passed clinical trials with provisions of being effective and safe in promoting weight loss for individuals that are moderately overweight. Obese people accumulate large quantities of body fats that affect their health states. In this context, the condition is a contributing factor that speeds up the prevalence of other diseases and also a leading cause of deaths globally. Clinically obese individuals have heightened risks of strokes, cardiovascular diseases, diabetes, and related cancerous ailments. The statistics of clinically obese individuals continues to rise gradually in the world. In reference to the U.S. Centers for Disease Control and Prevention (CDC), over the last 20 years cases related to obesity have shocking numbers that continue to rise in the present times. According to the research team at CDC, an estimated 35.7% of American adults are obese with an additional 17% of children being obese in the United States (Daniel 56). In 2011, the center documented reports sighting that over two-thirds of the American population is either obese or overweight. Projected analysis also shows that by 2030, 42% of the American population will encounter clinical obesity related issues. In 2008, CDC reports expenses incurred in obesity related issues totaled to a shocking $147 billion (Friedhoff 135). Despite the growing plague, the current techniques employed in the treatment, management, and prevention of the issues remain ineffective. Other therapeutic approaches are in place to try and resolve the problem. As a result of the ensuing problem, large pharmaceutical drugs have made efforts to develop medications for the condition with to no avail. Instead, small companies are taking up the risk of providing medication to save the situation (Whitmore 27). As a result of the plague taking a toll on almost all medications developed, the exercise to research on alternative treatments almost came to a stop in the last decade. Large pharmaceutical giants gave up on obesity treatment efforts; this left small biotechnology companies the big task of forging ahead. After 13 years of no new drugs for the treatment of obesity, the United States Food and Drug Administration approved two medicines for the treatment of obesity. This was a tremendous step in the rejuvenation of efforts to develop these curative medicines. According to Kevin Starr (Third Rock Ventures LLC partner), the darker days where obesity rocked the nation and the regulatory measures weak were about to come to an end. The change at FDA created a new market segment for the development of the drug to treat obesity. After the change at FDA, the following companies increased efforts in development of a treatment medicine for obesity. The companies include Roche Holdings AG, Vivus Inc, and Arena Pharmaceuticals. Roche Holdings developed Xenical as the first obesity drug in the treatment of the condition. It was also the first medicated medicine to hit the market. It aids in losing weight through blocking the digestion process of fats found in stool. An added advantage to the drug is the reduced strength OTC Alli that FDA approved (Daniel 107). However, the side effects of the drug include frequent and oily bowel movements with instances of gas accumulation in the bowel. In 2009, the company lost the patent rights for the drug. In addition, there exists a generic version of the drug in countries across the globe. Arena pharmaceuticals focus on Belviq, a drug that enables the loss of appetite through the action of chemicals in the brain. Prescribing this drug also calls for periodic observations for three months by a physician. Adverse effects of the drug include fatigue, nausea, dizziness, constipation, headaches, and dry mouth. Instances of rare yet side effects include chemical imbalances, suicidal thoughts, problems with memory, and psychiatric problems. The last company, Vivus Inc produces Qysmia drug. This drug combines phentermine (a short-term use drug for weight loss) with topiramate (a control medicine for seizures) to treat obesity. The side effects are similar to Arena’s Belviq drug. These include suicidal thoughts, increased heart rate, and constipation, tingling of feet and hands, dizziness, insomnia, and dry mouth (Whitmore 109). The company suffered a sudden setback after rejection of the drug by the European Medicines Agency (EMA). Although the United States approved the drug, one of its main ingredients, phentermine, receives criticism as a result of the side effects on the blood vessels and heart (Friedhoff 80). Market Analysis Markey surveys In 2007, an extensive market survey took place under the supervision of the company. The survey included 1000 women and 1000 men between the ages of 10 and 70 with Body Mass Indexes (BMI) ranging from 25 to 29.9. The aim of the survey was studying and understanding customer behavior and the desires of the customers. 70% of the participants surveyed were not comfortable with their current body weights. 35% admitted to increasing efforts in losing weight. 15% stated that they were comfortable with the use of drugs to induce weight loss. After a lengthy description of the advantages posed by Metabical, 12% of the participants accepted booking appointments with physicians for prescription of the drug. In reference to gender acceptance in the participants, 65% of women and 75% of men were uncomfortable with their current appearance and weights. In contrast, 30% of men and 50% of women visited health centers for physical checks annually. Based on the survey reports, a total of 40% of men and 55% of women wanted to completely change their current lifestyles to healthy ones. In other reports, 65% of respondents between 18 and 35 years confessed to wishes of losing weight for a better appearance (Daniel 56). In comparison, 35% of the same age bracket wanted the change for a better healthier lifestyle. 40% represented respondents of 35 years and over willing to lose weight for a good appearance with 60% opting for improved health. In conclusion, the survey results presented the following. 5% of the respondents had income levels below $40,000, %11 had income levels between $40,000, and 20% had more than $80,000 income levels. All of the respondents mentioned that they would not mind spending an extra coin for a prescription of Metabical weight loss drug. In reference to the report, therefore, the need to develop a safe and clinically proven weight reduction drug was necessary. SWOT Analysis This defines a technique used in the strategic planning that evaluates the strengths, weaknesses, opportunities, and threats of an entity. It also involves the monitoring of both internal and external marketing environments of a business. After implementing the technique in research efforts at the company, these were the conclusive results. The strengths of the Metabical drug include the effectiveness and safety in weight loss achievement, the FDA approval, less harmful in comparison to other treatments, a short prescription period (12 weeks), and the comprehensive and strong marketing strategies by Barbara and the company. The weaknesses include negative side effects such as gastrointestinal; the drug is not suitable for individuals with a BMI of less than 30, and the combination of Meditanan and Calosera creates dramatic effects for weight loss causing other related complications (Friedhoff 90). The opportunities include the creation of a large market due to the negativity expressed towards obese and overweight people. In addition, in 2008, there is no other alternative drug prescription for overweight individuals segment (BMI ranges 25-30) except for Alli. This means that there is minimal competition facing the introduction of the drug in the market. From the research reports, there were indications of a large population wanting to lose weight (Whitmore 96). In the strategic plans of the company includes the establishment of a support group for the patients. This is an added advantage to the company’s sale of the drug. The program intends to impose lifestyles for a maintainable weight. The threats include recent safety concerns raised as allegations to weight-loss producing companies. The accusations sighted the company’s deceptive marketing strategies that lowered the enthusiasm of the customers for the products. These claims damaged the industry’s credibility in regaining the trust of the consumer market. The increased number of herbal products and dietary supplements worsen the situation as these medicines are not FDA approved. To worsen the condition, the negative side effects pose severe health risks to patients. Target Market In 2007, Cambridge Sciences Pharmaceuticals (CSP) conducted a market survey so as to determine the best technique to employ in the selection of the most appropriate method for a positioning strategy. In addition, Barbara Printup carried out a parallel study to aid in the analysis of psychographic segmentation of moderately overweight individuals. Based on the results from the market surveys, psychographic segmentation, and market research, the company concluded that the target market for the drug for: a. Overweight individuals with BMIs ranging from 25-30. b. Women of ages ranging from 25-65. c. Women owning incomes ranging from $50,000-$60,000. d. Women studying in colleges and higher institutions of learning. e. People with issues related to obesity and are making efforts in losing weight. f. People ready to change the current state of their lives and leading healthier lives. Marketing Communication Strategy The method selected for the marketing the communication strategy had to play a large part in addressing all the involved participants in the decision making process. According to Barbara, this was the only way to ensure the drug’s domination of the young market in comparison to other competing companies (Daniel 56). The first lot to target is the health care providers prescribing the drugs and the direct consumer market taking the drugs. To the end of the consumers, the communication strategy must focus on the consumer’s need to lose weight for the fulfillment of better and longer lives. The strategy should also concentrate efforts in improving the communication process through the provision of solutions through Metabical and the proposed support program. Marketing Budget Year 1 Advertising Push (Prescriber) $ 1,000,000 Pull (Direct To Customer) $ 12,000,000 Total Advertising $ 13,000,000 PROMOTION Development of Support Program $ 200,000 Lunch & Learn Seminars / Other Promo $ 600,000 Production of Support Program $ 2,000,000 Training / Promotion Materials $ 500,000 Direct Mailing to Health Care Providers $ 200,000 Total Promotion $ 3,500,000 PUBLIC RELATIONS Medical Education Meeting and Event $ 3,500,000 Press Release / Materials $ 800,000 Total Public Relations $ 4,300,000 Market Research $ 600,000 Sales Force Allocation $ 1,491,000 Product Management Allocation $ 255,000 TOTAL BUDGET $ 23,146,000 Schedule of Marketing Communication Activities The schedule is for the company to determine how long it takes to reach the direct consumers of the drug Metabical. Company-to-consumer advertising is a new technique and phenomenon applied in the drug industry (Whitmore 43). This is a result of new guidelines imposed by FDA in 1997 opening opportunities to the drug companies for advertisements. The first year, the company should spend on advertising activities to direct-to-consumer marketing strategies. This is in order to create knowledge and brand awareness in the drug. This includes online, radio, press conferences, television adverts during the official launch of the drug in January 2009. A tag line for the product is also an effective idea of promoting the sale of the product. Senior Executives at the company refuted ideas of inclusion of celebrity endorsers in the promotional efforts for the drug. In contradiction, Barbara and the marketing team believes that the inclusion of a celebrity spokesman for the Mitabical product will go a long way in promoting sales (Friedhoff 45). The drug should also target professional medical communities which are health care providers. Promotion and Public Relations This budget also added a campaign trail aimed at end consumers and healthcare providers. The budget allocated the campaign a total of $4.3 million. $1.3 million of the total allocated funds went to promotional campaigns during the first year after the launch of the drug. Before the launch of the drug, ready cards and pamphlets were ready for mailing to 100,000 healthcare centers as a direct mail promotional strategy. The pamphlets contain detailed information on the Metabical drug. The next most appropriate strategy should focus on the viral marketing campaigns so as to reach a wider scope market. The viral marketing involves the use of internet sales and social networks such as twitter, blogs and face book. In this regard, this helps the company reach a wider audience at a considerably cheaper cost. People love the seeing results as well as testimonials so as to get the motivation and interest in a product. Increasing breakout sessions that focus on health issues regarding overweight individuals further strengthens communication strategies in product awareness and effectiveness. Sales Forces The company’s sales team had 32 sales representatives servicing a total of 3,200 medical officers. The role of the sales representatives was educating the healthcare providers on the Metabical drug. So as to achieve the expected sales, the representatives needed to arrange for visits to a minimum of four medical officers so as to finish up the 3,200 number stored in the company’s database (Daniel 80). In other reports, the need to increase the number of sales representatives proved necessary so as to deal with the growing number of medical healthcare providers. This helps the company in tapping a market not discovered by the competing companies. Product Strategy The strengths of the Metabical drug include the effectiveness and safety in weight loss achievement, the FDA approval, less harmful in comparison to other treatments, a short prescription period (12 weeks), and the comprehensive and strong marketing strategies by Barbara and the company. Thus, the company needed to identify the most appropriate method for packaging the drug in consideration of the number of pills per case (Whitmore 67). By packaging the twelve week supply in one pack leads to higher pricing and affects the number of customers. Instead, attaching a support program to a 3 pack for twelve weeks attracts more customers. Distribution Strategy As a result of the prescription nature of the drug, its distribution is only to areas such as healthcare providers, specialty stores, and drug stores. Therefore, finding the drug is only at approved pharmacies to avoid abuse of the drug. Conclusion Barbara came up with a comprehensive and strong marketing communication strategy that focused on the Metabical benefits and brand awareness to the targeted overweight group. In reference to extensive market analysis, market researches in addition to focus groups results, the communication strategies for the company will create successful demand for the Metabical drug. An added advantage is the definition of the drug as the only prescription for treating obesity and overweight issues. In addition, the FDA approval makes the drug unique and clinical reports sighting weight-loss helps the company in improving communication and marketing strategies for more, steady demand for the drug in the future. Work cited Friedhoff, Lawrence T. New Drugs: An Insider's Guide to the Fda's New Drug Approval Process, for Scientists, Investors, and Patients. New York: Pharmaceutical Special Projects Group, 2009. Print. Whitmore, Elaine, and Elaine Whitmore. Development of Fda-Regulated Medical Products: Prescription Drugs, Biologics, and Medical Devices. Milwaukee, Wis: ASQ Quality Press, 2003. Print. Daniel, Amiram, Ed Kimmelman, and Kimberly A. Trautman. The Fda and Worldwide Quality System Requirements Guidebook for Medical Devices. Milwaukee, Wis: ASQ Quality Press, 2008. Print. Read More