Promotional Objectives and Strategies for a Weight-Loss Drug - Assignment Example

? Communication Plan Based on this theoretical underpinning, the study aims at analysing the case of Metabical, which is a weight-loss drug newly proposed by the Cambridge Sciences Pharmaceuticals (CSP), with reference to the study presented in Quelch & Beckham (2010). Correspondingly, the communication plan developed through the study will be assessed in this essay in a comprehensive manner. Communication Plan Communication plan is the scientific process as well as the art for reaching targeted customers by using different communication channels of public relationship, experience and advertising (Somers & Nelson, 2001). An effective communication plan acts as a guide to the marketing managers in the company to maintain a better cooperative relationship with the targeted customer group through an enhanced ability to suffice customer needs (Lyles, 2002). It is also argued to be an effective tool to build trust amid the customer groups, which not only stimulates greater volume of customers purchasing the offered service/product, but also ensures long-run stability in the organisation-client relationship (Andersen, 2001). Context Analysis Cambridge Science Pharmaceuticals (CSP), as an international healthcare company, puts principle emphasis on marketing, manufacturing and developing medicinal products that treat gastrointestinal diseases, metabolic disorders, and immune deficiencies along with other chronic and acute medical conditions. Notably, the study in Quelch & Beckham (2010) reflects that majority of the US residents are facing problems related to overweight and obesity, which includes almost every age group with dissimilar perceptions. This rating apparently advocated that one of the major causes for the preventable death toll in the US was diseases of health issues resulting from overweightedness and obesity. It is worth mentioning in this context that with the research conducted by CSP’s Senior Director of Marketing, Barbara Printup, overweight was related to a number of serious health complications about which, the common public was becoming increasingly aware of, taking measures to avoid these hazards. All these factors undoubtedly presented a promising scenario as much as the demand for a weight-loss safe drug was concerned (Quelch & Beckham, 2010). However, the study shows that there were many drugs being circulated around the market to suffice the demand for weight-loss drugs in the US. For example, Alli, a weight-loss drug product, was launched in the US market in 2008 after its approval by the FDA. The product was failed to capture the market because of negative side effects, directly hampering the gastrointestinal conditions of the regular consumers. On the other hand, other Over-The-Counter (OTC) weight-loss solutions focused on their capabilities to serve with minimum side-effect assurance, being based on herbal ingredients such as green tea extract, hoodia and chromium. These products were categorised as herbal or dietary supplements by the FDA, which even though ensured minimum side-effects, but were massively slow in yielding faster results (Quelch & Beckham, 2010). Based on the arguments, it becomes explicit that even if the market presented a promising opportunity for the weight-loss drug, it also had its unique barriers of side-effects and faster results. Correspondingly, Metabical possessed some negative effects, which can hamper its market presence and long-run success potentials subjected to the effectiveness of the marketing strategies used for its launch (Quelch & Beckham, 2010). Promotional Objectives As mentioned in Quelch & Beckham (2010), the final launch of Metabical was pending on the year 2009, in the month of January, following its approval by the FDA. Correspondingly, CSP had a year to program its promotional strategies. The promotional objectives, thereby determined by Printup on behalf of CSP’s Metabical were targeted to both the end consumers and the health care providers who shall be a pivotal participant in the communication plan. The foremost promotion objective of the communication plan was to generate awareness and develop trust amid the end users in consuming Metabical. In the most rational manner, the promotional strategies planned by CSP were different for the two targeted groups. The healthcare providers were to be informed about the product through direct mails, which would include informational pamphlet along with a sample of the initiated support program. On the other hand, its promotional strategies planned for the end users, focused on virtual campaigning through competition. On the whole, these strategies were aimed to be cost effective and beneficial in building effective public relations. Notably, from a critical point of view, it can be argued that these strategies and the corresponding objectives although it can be quite effective in the short-run, it shall become ineffective in the long tenure subjected to the innovative measures taken by the company on a continuous basis. It was corresponding to this limitation of the promotional objectives and strategies planned by Printup that she also focused on the timing of product launch and continuous monitoring of the results obtained through the promotional strategies (Quelch & Beckham, 2010). Marketing Communication Strategies Marketing communication strategies help in developing brand awareness, along with generating a more coordinated relationship with the company’s stakeholders, including supply chain partners and the end customers. Correspondingly, CSP designed an integrated marketing communication strategy with the help three basic communication components, viz. Advertising, promotion and public relations and sales force. Analysing the marketing communications strategies planned by CSP in launching Metabical, it can be observed that much stress was provided by Printup in developing and applying advertising strategies as intended. The company principally focused on a Direct-To-Customer (DTC) advertising approach based on three key concepts as was suggested by its advertising agency emphasising the informative benefits of the strategies. For instance, as per the planning, the advertisements of Metabical were planned to make its end users understand that “losing weight is tough” and thus requires considerable amount of patience and time. This can certainly prove effective in mitigating the possible drawback that Metabical may face in yielding fast results with minimum side-effects. Secondly, the advertisings were also aimed at highlighting the advantages of the product, making the targeted audiences realise that Metabical can help them look their best. Thirdly, with the same objective, the advertising strategies planned to highlight the cons of being overweighed, thus stimulating the health conscious feeling within the end users that could eventually raise demand for the product (Quelch & Beckham, 2010). To be noted in this regard, all these advertising strategies can certainly prove effective, provided the targeted audiences for the advertising are not reluctant in gaining this information. Accordingly, it shall be suggestible to pay greater attention to the customer preferences and perceptions in modifying and re-modifying these advertising strategies in a more realistic manner (Smith, Smith, Berry & Pulford, 1999). Apart from the advertising, the company also focused on developing effective promotion and public relations strategies, which intended to generate awareness regarding the product and preserve an interdependent relationship with the customers. Social media promotions, promotion through direct mails, especially for the healthcare providers who were intended to be the intermediaries in the supply process of Metabical, and competitive promotion techniques were to be used by CSP in its marketing communication strategies (Quelch & Beckham, 2010). From a critical point of view, as was argued in the above section, these strategies may be effective in the short-run, but shall lack in the long-run. Moreover, as Printup affirms to be inadequately trained in the use of social media for promotional ventures, it is likely that the organisation will have to hire a technician group for the strategic implementation, which in turn may raise its financial demands. Therefore, it is suggestible that alternative programs must also be developed by Printup, in the form of a secondary promotion and public relations strategy to combat the possible challenges raised if the planned strategies failed. Nevertheless, Printup must ensure that the sales force is adequately aware of the company’s intentions behind marketing metabical, its pros and cons as well as the customer needs, in order to obtain maximum benefits through their engagement. Promotional Mix Theoretically, there are mainly five forms of tools used in a promotional mix; advertising, personal selling, public relation, sales promotion and direct marketing (Kotler, 2010). In the presented case study, CSP can be observed to have planned to use four promotional mix tools, which included advertising, public relation, sales promotion and direct marketing. Correspondingly, in Metabical’s promotional mix, Printup considered a well-known celebrity endorser who would also be participating in the advertising and sales promotion measures. Additionally, the promotion mix strategies of CSP was planned to include print media (i.e. the reputed medical journals to reach the healthcare professionals as a target audience group) and the social media as well as other forms of audio-visual media to convey the intended messages to the end users. As expected, celebrity endorsement shall be beneficial for Metabical in gaining customer trust and interests within a short tenure. Moreover, Metabical’s advertising strategy has also been planned to target the professional medical community, herein the trained sales force might of great help along with the direct mailing strategies. Involvement of these personnel shall assure maximum awareness among the healthcare professionals regarding the benefits that Metabical will offer as an FDA and clinically proven weight-loss drug. The other technique planned by CSP in its promotional mix was concentrated on public relationship. It was through this mechanism that CSP intended to develop a long-run relationship with its two targeted group of customers, i.e. the healthcare providers and the end users. It is worth mentioning in this context that the company also intended to involve strategies for personnel selling in its promotional mix, although indirectly, i.e. through the involvement of sales force (Quelch & Beckham, 2010). On the whole, the promotional mix strategies planned by Printup can be stated as all-inclusive and integrated to yield long-run effectiveness, based on the managerial competencies of CSP. Resources The communication plan developed to support the launch of Metabical required resources, which can be classified in two groups, i.e. human resources and finances. Printup can be observed to involve a sales team consisted of 32 sales representatives. The sales team was planned to be responsible for two gastrointestinal drugs. This sales team was also planned to be responsible for developing sales scripts and presentations providing clinical information to the healthcare providers as intermediaries in the supply chain of Metabical. The sales team was likewise planned to visit 3,200 medical offices in total, all around the US and facilitate the sales volume of Metabical. In a realistic manner, the personnel were planned to suffice the target of visiting at least 4 practices each day, to attain the goal of 3,200 visits in total, for the promotion of the drug. With concern to the involved financial resources, it is worth mentioning that Printup has revealed CSP to have already spent 10 years in performing rigorous research and development processes for the medicine and in lieu incur a cost of $400 million. This in turn increases the cost burden on the communication plan for Metabical, which was supposed to be over $23 million only for the promotional purpose in the very first year as can be observed from the diagram represented below. Source: (Quelch & Beckham, 2010) Notably, in order to make the communications plan more realistic and profitable, Printup should also focus on calculating the break-even and return on investments for this project. This shall not only assist in implementing the strategies in a more coordinated way, but shall also ensure complete utilisation of resources with minimum wastes. Associated financial risks to the project must also be considered by Printup, so as to take requisite preventive and coping measures to combat the probable challenges. Schedule and Implementation On the basis of the above assessed communications strategies planned by Printup in the launch of Metabical, the following Gantt chart has been developed, which illustrates the schedule for the implementation of the intended strategies within a period ranging to one year. Evaluation and Control Once implemented, communications strategies must be under continuous scrutiny and monitoring, to yield the expected benefits and returns on investment. Considering the strategies planned by Printup, it is quite explicit that the planning tends to yield short-run benefits rather than rendering due focus on yielding long-run returns. In this context, Printup must ensure that SP’s promotional strategies are under continuous monitoring, where periodic feedbacks from the sales forces and analysis of the sale volume as well as customer satisfaction based on customer feedback are emphasised with due significance. Additionally, to ensure adequate control of the management on the promotional mix strategies, the entire promotion team, i.e. the human resources at all levels, must be duly informed about the significance and objectives of the project. SWOT Analysis of Metabical Strengths First prescription drug for weight loss Has Food and Drug Administration (FDA) approval Good results in clinical trials and market research Better characteristics than other products in the market Weaknesses Effective mainly for individuals whose BMI is between 25 and 30 Potential side effects No support from health insurance Opportunity Potentially huge market demand Additional health program development Continuous rise in the number of overweight and obese adults Threats Negative experience with similar products and methods No trust in marketing claims Health concerns PESTEL Analysis for Metabical in the US Political Rising number of health issues resulting from obesity and overweightness causing immense political pressure on the healthcare industry Federal Trade Commission pays $ 25 million to settle weight loss claims putting constraint on weight-loss drugs Exclusion of anti-obesity drugs from health insurance coverage Economic People with less income level tend to be more prone of obesity and overweight health issues, causing constraint to their healthcare affordability Cost of weight-loss drugs are quite high, contributing to economic pressure in yielding substantial returns Social Obesity among young adults hinder their education level Men tend to suffer greater obesity threats as compared to women Mortality rate among the US adults is likely to increase steeply Technological Involvement of high investment in research and development of weight-loss drugs Requirement of faster effects as demanded by consumers and minimum side-effects put constraint on technical innovation Lack in obtaining governmental aid in research programs Environmental The research process to develop weight-loss drugs like Metabical should be manufactured in a hazard free manner avoiding any direct or indirect pollution effects on the environment No hazardous material must be used in manufacturing these drugs Legal Legislative bindings applicable in obtaining the approval from FDA Legal implications on ill-effects of these drugs (Quelch & Beckham, 2010) Conclusion As a matter of fact, every project possesses certain strengths and limitations. The promotion mix designed by CSP can also be examined to have similar features. It is worth mentioning in this regard that the success potentials of the strategies planned shall reply on the leadership effectiveness of Printup in continuously monitoring and controlling the resources allocated. Notably, due focus should be rendered by Printup in delivering due significance on framing the long-run effectiveness of the plan as well as strategising in a more realistic and flexible manner. Proper risk management strategies are also needed to be considered by Printup in yielding maximum assurance of the project success. References Andersen, P. H. (2001). Relationship development and marketing communication: an integrative model. Journal of Business & Industrial Marketing, 16.3, pp. 167-182. Kotler, P. (2010). Principles of Marketing: A South Asian Perspective, 13/E. US: Pearson Education. Lyles, A. (2002). Direct marketing of Pharmaceuticals to Consumers. Annual Review of Public Health, 23, pp. 73–91. Quelch, J. A., & Beckham, H. (2010). Metabical: positioning and communications strategy for a new weight loss drug. Brief Case, 1-11. Smith, P., Smith, P. R., Berry, C., & Pulford, A. (1999). Strategic marketing communications: new ways to build and integrate communications. Philadelphia: Kogan page publishers. Somers, T. M. & Nelson, K. (2001). The Impact of Critical Success Factors across the Stages of Enterprise Resource Planning Implementations. Proceedings of the 34th Hawaii International Conference on System Sciences, pp. 1-10. Read More