Lilly and Company Marketing Plan - Case Study Example

Marketing Plan Introduction: Lilly and company is a leading company in pharmaceutical sector. Its strategies are innovative and the management was committed to develop a growing portfolio. Their activities are directed towards making the company best in class and first in class in Pharma sector. The products of the company will help the people to live longer and better. The purpose of the drugs manufactured by the company is to give healthier life to the people. The products of Lilly can treat depression, schizophrenia, attention deficit hyperactivity disorder, diabetes and osteoporosis.1 A drug named Zyprexa, which is product name of Olanzapine is anti psychotic and helps in treating in acute bi polar mania.2 It is used to treat mental disorders like dementia in young and middle aged persons. 2. Marketing Plan for Olanzapine 2.1 Terms of Reference: The terms of reference in marketing of anti psychotic drug Olanzapine are the psychotic disorders, alcohol mania, tobacco edicts and other bi polar mania. The different mania that the drug can treat and the specialists in treating those disorders can be mentioned. The company should refer the drug to the specialists and experts in treating these disorders. Their references can help in marketing plan of the drug. First the experts and distributors must be made familiar with the product name of the drug. 2. Executive Summary The marketing plan constitutes the reference of the drug to the Drug certifying authority in UK and taking their no objections certificate. After that the experts in the field of mental disorders can be consulted and they must be informed about the launching of the drug in UK. After that the company should arrange a meeting of the distributors in its network to inform about the cost of the drug and the percentage of the profit for the distributors and wholesalers. The publicity campaign also can be discussed with them and necessary changes can be done if they want any. As this is not the drug, which a common man can use the publicity will only expert oriented. 3. Business Mission The business mission of Lilly pharmaceuticals in UK by releasing the drug containing Olanzapine is to conquer the UK market regarding the drugs that deal with mental disorders and bi polar manias. The company wants to ensure good mental health to the citizens of UK by offering the drug at a reasonable price. The strategy is to take the efficiency of the drug to the specialist doctors and psychologists in UK and make them understand the efficacy of the drug in treating the mental disorders and bi polar mania. 4. External Marketing Audit The drug containing Olanzapine is a drug that must be prescribed by specialists. A common man cannot prescribe its dose and course on his own. The advertisement and publicity regarding it must be addressed to Wholesalers, distributors, specialist doctors and psychologists. 1 The amount of money to be spent by the company can be concentrated on the websites regarding the mental and psychological disorders. The company can post advertisement on those websites. The magazines regarding mental and psychological disorders and Television programmes about these disorders can be targeted for posing advertisements. The budget for making of posters, broachers, articles that can be given as presents for the promotion of the drug must be calculated and incorporated in the marketing plan of the drug. While conducting the external market audit, not only the advertisement budget but also the macro environment, competition and the potential in the market must be estimated. For this purpose the following details can help in estimating the budge regarding the above three issues. The environment in UK that consists of specialist doctors for mental disorders and psychologists who treat bi polar mania must be recognised. After that operation, the drugs of the competitors must be taken into account and the means of publicity of them must be considered to overcome their strategies. Before having these above two estimations the potential of the market for the drug must be estimated and the chances of extent of the market capture can be calculated. The budget for conducting all the above operations must be included in external market audit. 5. Internal Marketing Audit The internal marketing audit consists of the following: Transforming audit functions Providing financial, operational and specialist services within the company regarding the marketing strategies and business needs Operational controls, Financial controls.1 The implementation of the above operations includes the programme risk and control. The successful delivery of the products and the return on investments due to marketing strategies must be calculated. These include assessment of control and risk, when the marketing strategies were implemented. Along with providing assurance regarding the prompt delivery, the management must ensure the delivery of property and infrastructure programmes and investments required for the manufacturing and marketing of the product in time. The above audit includes the following stages Operating Results Strategic Issues Analysis Marketing Mix Effectiveness Marketing Structures and Systems The operating results contain the details of delivery of the product to distributors, whole sellers and retailers in time. The payments of the customers to the company regarding the goods sold on short term credit and long term credit. The strategic issues regarding selecting the business partners, representatives and their training, the area for marketing the product can be included in the strategic issues. The analysis of the business partners selected the analysis of the market for training the representatives, and the analysis of the behaviour of the customers in the area of marketing come under strategic issues analysis. The marketing mix effectiveness can be evaluated by estimating the effectiveness of the individual marketing components. The individual marketing components in marketing of Olanzapine in UK can be termed as its price, promotion, advertising and other marketing activities that involve brand value. 1 The productivity of specific marketing efforts include the recommendations about the expert and specialist doctors and psychologists who treat the patients with mental disorders and manias. The accurate estimation of marketing the product results in right return on the investment. The marketing mix modelling results in estimation of volume of the business done in each marketing component. Change in the distributors of Olanzapine depending on their performance in facing the obstacles regarding marketing and issues according to UK law. Return on Investment by the implementation of the marketing strategies like engaging representatives, distributors and C&F agents in UK. Regarding the pharmacy product, which is not a common commodity and deals with the specialists in the field, there will be business issues addressed by mixed modelling. In the case of advertising of Olanzapine in UK the posters, articles, websites, TV programmes selected for advertising must be evaluated as per the business effectiveness. The analysis about the percentage of mentally disorder patients using Olanzapine manufactured by Lilly Company can be estimated. This gives a report about the market capturing. The promotion of trade regarding anti psychotic drug in UK can be done by convincing the specialists in the field. This requires trained and qualified marketing executives who can interact with the doctors and psychologists. The company also should provide the necessary training. A customised database of the doctors and psychologists treating the patients suffering with mental disorders and manias must be maintained. The record of the percentage of the doctors and psychologists who are recommending the drug produced by Lily pharmaceuticals must be maintained. This will be an indicator for the market captured and to set the targets for future market capturing. 6. SWOT Analysis According to this the swot analysis of the marketing of Olanzapine can be done. The strength of the marketing strategy of this drug is that the antipsychotic market is moving into a new competitive environment with number of new formulations to be launched in future. Lilly company is leading manufacturer of the drug in UK. . There are no competitors in UK that can pose substantial threat for its marketing. The weakness for the marketing strategy of the drug is that there are some results declared by some expert doctors and psychologists in UK that it may cause death in the old people suffering with dementia. Opportunity regarding the marketing of the drug is that there is no specific study in UK that reveals the dangerous consequences of the treatment involving this drug. The confidence limit for UK market sales for antipsychotic drug is high. Threat to the marketing of this drug is that the product is not common man oriented and it involves the dealing of specialist doctors and psychologists in UK. The record of the clinical trails of this drug in UK is less optimistic.1 7. Marketing objectives Strategic Thrust: The areas the company should show concentration regarding the marketing of the drug is the hospitals, which give treatment for psychotic disorders. The major thrust can be applied on the distributors and whole sellers in the areas of location of the hospitals that treat psychotic disorder patients. It is clear that the psychiatric scenario of the drug company influence is increasing. According to study between 1993 and 2001 the prescription of psychopathic drugs increased in UK. The past record regarding drugs was also inspiration to marketing strategy of the company. The usage of drugs is increasing in UK on the lines of US. This makes possible to achieve the targets set in the marketing strategy of the company. Strategic Objectives The strategic objective of the company is to capture 50 percent of the market share. The reason for that high standard target is there is no other competitor that can produce this drug on large scale as Lilly pharmaceuticals. It may take some time for the competitors to produce the drug in the large scale and pose threat to Lilly. This advantage due to lack of competition must be used by Lilly in UK in market penetration. 8. Core Strategy Target Markets The choice of the target markets was made earlier. The drug is to treat the patients suffering from mental disorders and mania. The hospitals that treat these disorders, the specialist doctors and psychiatrists who treat the alcoholic addicts and dementia patients are the target markets for the company. The company should compete with its competitors in this area. Competitor Targets The competitors Vernalis and Novartis applied for the permission to produce drug using Olanzapine. The companies are still not in a position to pose threat to the marketing strategy of the Lilly pharmaceuticals. This competitor advantage was mentioned earlier and now it was considered as a competitor target to get easy access to the market. 9. Budget The budge for the marketing of a product should be based on the extent of the market capturing the company targets at. According to the size of the company in UK Lilly pharmaceuticals the marketing budge for an year can be approximately 30 million pounds. This can be drawn from the fact that the company has spent 300 million pounds for marketing its products in last decade. According to that it can spend 30 million dollars this year for marketing of its new products. As there are other areas of products to market the budget that can be allotted for the marketing of the Olanzapine drug can be around 3 million pounds. This is because, the company is releasing new drugs in the areas like cancer, schiphernia, diabetes and so on. As the Olanzapine drug has less competition in UK the major budget for marketing can be allotted to the remaining drugs and 10 percent of the marketing budget is enough for the marketing of anti psychotic drug. 1 10. Control There should be a marketing monitoring team, which analyses the target achievements quarterly. If the achievement is weak or below average for consecutive two quarters, the corrective action can be taken by the committee with the consent of management. References: The references were given in following format Author, year, title, publisher, edition, type of media, date retrieved, website address 1. Lily management, 2006, Company's Profile, Lilly Pharmaceuticals, ,electronic, 17-12-06, http://www.lilly.com/ 2. Nami team, 2006, About Medication, Nami walks, ,electronic, 17-12-06, http://www.nami.org/Template.cfmSection=About_Medications&Template=/TaggedPage/TaggedPageDisplay.cfm&TPLID=51&ContentID=20811 3. Audit Team, 2006, external audit, Audit, ,electronic, 17-12-06, http://www.auditsafe.com/audit-file/external-audit.html 4. Ernest and Young team, 2006, Our solutions, Ernst & Young, ,electronic, 17-12-06, http://www.ey.com/global/content.nsf/UK/Business_Risk_-_Solutions 5. Aileen beatty, 2006, marketing mix modelling, Knowledge networks, ,electronic, 17-12-06, http://www.knowledgenetworks.com/approaches/mix.html 6. author not mentioned, 2006, Market Dynamics: Antipsychotics - A Market Driven by Reformulation, Research and Markets, ,electronic, 17-12-06, http://www.researchandmarkets.com/reports/4614/4614.htm 7. Marketing team, 2006, Sales and Marketing, Lilly, ,electronic, 17-12-06, http://www.lilly.co.uk/Nitro/newTemplates/general/Content_IT_LBCT.jsppage=1256 Read More