10-Step Marketing Plan RiteMed Metformin by Jose Mariano Tan ASMPH Class 2012 Marketing under Professor Barrenechea

1. JOSE MARIANO TAN 29 NOVEMBER 2010
10-STEP MARKETING PLAN FOR
Metformin HCl ®

2. FIVE STEPS FOR PART 1
 1. Target Market: Diabetes Type 2 Patients"
 2. NWE: Optimal Glycemic Control
 3. Choice:
 Branded and/or
 Generic Medications
 4. Gap: Branded Generics Strategy
 5. Market Size:
 PhP2.3 Billion (Total)
 PhP1.2 Billion Niche

3. FIVE STEPS FOR PART 2
 1. Product: Metformin HCl from RiteMed"
 2. Price: 20-80% less of Branded Price
 3. Promotion:
 Broadcast Trimedia (Unilab Guarantee)
 Sales Representative
 4. Place: Unilab Network, Nationwide
 5. Strategy: Straddling
(Low Cost & High Quality)

4. Positioning to the
Primary Target Market
Part 1: Step 1 of 5

5. Primary Target Market
 Demographics:
 > 40 years old
 M > F*
 Social Class C to E
 Overweight*
 Lifestyle:
 Minimal Physical Exercise
 High Consumption of Processed Foods and
High Sugar Diet

6. Primary Target Market
 Consumption Behavior:
 500 mg Tablet
 2x/day
 Regular Hospital Monitoring
 Multiple Medications
 Lifestyle Changes

7. Needs Wants and
Expectations of
Target Market
Part 1: Step 2 of 5

8. Needs, Wants and Expectations
 Maslow’s Hierarchy of Needs
Good Health
Realization of Goals

9. Needs, Wants and Expectations
 Developmental Stages of Erik Erikson

10. Needs, Wants and Expectations
 Developmental Stages of Erik Erikson
 Middle Adulthood (35 to 55)
 Generativity (Fear of inactivity and
meaninglessness)
 Triggered by Disease States

11. Needs, Wants and Expectations
 Maslow’s Hierarchy of Needs
Good Health
Realization of Goals
Generativity!

12. Needs, Wants and Expectations
 Wants:
 Quality Assurance
 Efficacy
 Low-Cost
 Limited Side Effects

13. Needs, Wants and Expectations
 Expectations:
 Decrease Blood Sugar Level
 Good Glycemic Control
 Controlled Side Effects
 No Disease Progression
 Generics Price Range

14. Direct and Indirect
Competitors
Part 1: Step 3 of 5

15. Competitors
 Boie
 Britton
 Health Saver
 Littman
 Metro Drug
 Metrolink Pharm
 Natrapharm
 NextChem
 Pharma Nutria
 Sanofi-Aventis
 Unilab
 Winthrop
 Zuellig
 Direct Competitors (Branded):

16. Competitors
 The Generics Pharmacy
 Generika
 Direct Competitors (Generic):

17. Competitors
 Indirect Competitors:
 Exercise
 Diet
 Insulin
 Insulin
Secretagogues
 Thiazolidinediones
 Alpha-glucosidase
Inhibitors
 Incretin-based
Treatments
 Amylin Analog

18. Competitors
 Variables:
 Efficacy:
 Glycemic Reduction
 Glycemic Control
 Reduction of DM Sequelae
 Safety:
 Minimal Side Effects

19. Competitors
 Variables:
 Price
 Ease of Treatment
 Brand Perception
 Name Recall
 Physician Prescription Practice
 Accessibility
 Availability

20. Competitive Position Map:
Price-Brand Recall for Quality Matrix
Low Medium High
> P8.51
P7.25-P8.50
P5.76-P7.00
P4.51-P5.75
P3.25-P4.50
< P3.25
Unilab
+
RiteMed
Zuellig
Brand Recall: Quality
Boie
Metro DrugNextChem Pharma Nutria
Winthrop Britton
PriceperUnit
Natrapharm
Littman
Generika
The
Generics
Pharmacy

21. Competitive Position Map:
Price-Brand Recall for Quality Matrix
Low Medium High
> P8.51
P7.25-P8.50
P5.76-P7.00
P4.51-P5.75
P3.25-P4.50
< P3.25
Unilab
+
RiteMed
Zuellig
Brand Recall: Quality
Boie
Metro DrugNextChem Pharma Nutria
Winthrop Britton
PriceperUnit
Natrapharm
Littman
Generika
The
Generics
Pharmacy
Niche as
Quality Low-
Cost Drug!

22. Customer-Competition Gap
Demand-Supply Gap
Part 1: Step 4 of 5

23. Demand-Supply Gap:
 RiteMed Metformin is the only product that:
 Assures Quality of Branded Products
 Rite Medicine
 Rite Formulation
 At Price of Generic Drugs
 Rite Price
 Other drugs assure quality at a price of
high cost or provide low cost with
questionable quality.

24. Market Size
Part 1: Step 5 of 5

25. Market Size (DOH Data & Journals)
 3.4 Million Filipinos with Diabetes
 94% Class C-E

26. Oral Anti-Diabetic Consumption 2007

27. Market Size (DOH Data & Journals)
 3.4 Million Filipinos with Diabetes
 94% Class C-E
 31% Prescribed Metformin

28. Generic Drug Use (2010)
 Social Weather Stations (SWS) survey showed the
percentage of Filipinos using generic drugs
increased to 55 percent in 2008.

29. Market Size (DOH Data & Journals)
 3.4 Million Filipinos with Diabetes
 94% Class C-E
 31% Prescribed Metformin
 55% Use Generic Drugs
 PhP 3.15 Retail Cost of 1 Metformin HCl Tab
 Consumption: 2x/Day
Market Size: PhP 1.2 Billion

30. Market Size (Business Monitor
International Data)

31. Market Size (Business Monitor
International Data)
 Philippine Pharmaceutical Industry
 PhP116 Trillion
 Share of Oral Anti-Diabetics
 3% or PhP3.5 Billion
 Share of Metformin
 31% or PhP1.08 Billion
Market Size: PhP1.08 Billion

32. Market Size
 Local Data: PhP1.2 Billion
 International Data: PhP1.08 Billion
Market Size: PhP1-1.2 Billion

33. Marketing Mix Strategy
Part 2: Steps 6 to 10

34. Product
Part 2: Steps 6 of 10

35. Metformin HCl Tablet Leaders

36. Product
 Contents: Metformin HCl
 Indications: Type 2 diabetes
inadequately controlled by diet
and exercise alone.
 Dosage: Initially 500 mg every
12 hr, dose may be gradualy
increased to a max of 2250 mg
daily.
 Administration: Taken with food

37. Product
 Contraindications: Renal
impairment, CHF requiring
pharmacologic treatment, acute or
chronic metabolic acidosis
 Special Precautions: Elderly,
hepatic and renal impairment
 Adverse Drug Reactions: Anorexia,
nausea, vomiting, diarrhea, lactic
acidosis, decreased vit B12
absorption
 Preparation: In 500 mg and 850
mg tablets

38. Price
Part 2: Steps 7 of 10

39. Price
 500 mg Tablet: PhP3.15
 Cheapest Drug in the Market
 43.7% Cheaper than Industry Average!

40. Promotion
Part 2: Steps 8 of 10

41. Promotion (Present Strategies)
 Advertising: Television and Radio
 Public Relations: Corporate Social
Responsibility
 Direct Marketing: Sales Representatives

42. Promotion (Present Strategies)
RiteMed manufactures and markets off-patent
pharmaceuticals priced 20 to 80 percent lower
than equivalent branded drugs.

43. Promotion (Present Strategies)

44. Promotion (Present Strategies)
http://www.youtube.com/watch?v=n1LHtncXXPA&feature=related

45. Promotion (Present Strategies)
http://www.youtube.com/watch?v=NtVAuZSUjmY&feature=related

46. Promotion (Present Strategies)

47. Promotion (Present Strategies)
Sales Representatives

48. Promotion (Proposal)
+

49. Promotion(Proposal)
SourceofIdea

50. Promotion (Proposal)
Unilab Yan!
Unilab Guarantee Seal

51. Promotion (Proposal)
 Phenomenon of Branded
Generics
 “Company-branded generics
can charge more for the
promise of quality.”
 “Patients prefer brands, as
long as they are the main
payers, they will continue to
use branded generics.”

52. Competitor Promotions
 Leading Pharmaceuticals with NO Metformin
Products:
 Pfizer Inc
 Wyeth Philippines
 AstraZeneca
 Bristol-Myers Squib
 Novartis
 Abott Lab
 Roche Philippines

53. Competitors
 Boie
 Britton
 Health Saver
 Littman
 Metro Drug
 Metrolink Pharm
 Natrapharm
 NextChem
 Pharma Nutria
 Sanofi-Aventis
 Unilab
 Winthrop
 Zuellig
 Direct Competitors (Branded):

54. Competitors
 No Broadcast Media
Advertisement
 Reliance on:
 Sales Representatives
 Product Samples
 Product Peripherals
 Sponsorship Programs
 Events
 Purchases
Direct Competitors (Branded):

55. Competitors
 The Generics Pharmacy
 Generika
 Direct Competitors (Generic):
http://www.youtube.com/watch?v=OGufEVhhf3Y&feature=related
http://www.youtube.com/watch?v=Z2ocsYU2i-s&feature=player_embedded

56. Place
Part 2: Steps 9 of 10

57. Place
 RiteMed is available in all
Major Pharmacies Nationwide:
Using logistical leverage of Unilab!

58. Generic Winning Strategy
Part 2: Steps 10 of 10

59. Generic Winning Strategy
 Branded-Generics Strategy!
 RiteMed’s Generic Strategy is to Dominate
Low-Cost Generics Market by Providing High
Quality Assurance of its Parent Brand, Unilab.
 It benefits from the distribution and market
leverage of Unilab.

60. Summary

61. FIVE STEPS FOR PART 1
 1. Target Market: Diabetes Type 2 Patients"
 2. NWE: Optimal Glycemic Control
 3. Choice:
 Branded and/or
 Generic Medications
 4. Gap: Branded Generics Strategy
 5. Market Size:
 PhP2.3 Billion (Total)
 PhP1.2 Billion Niche

62. FIVE STEPS FOR PART 2
 1. Product: Metformin HCl from RiteMed"
 2. Price: 20-80% less of Branded Price
 3. Promotion:
 Broadcast Trimedia (Unilab Guarantee)
 Sales Representative
 4. Place: Unilab Network, Nationwide
 5. Strategy: Straddling
(Low Cost & High Quality)