10 Step Marketing Plan forAforvir (Cetirizine HCl)

Raymund C. PiñonAteneo Graduate School of Business

2012 Edition

2

10 STEP Marketing Plan for Aforvir (Cetirizine HCl)

Raymund C. PiñonJuly 2012

http://raymundcpinon.blogspot.com/

This 10 Step Marketing Plan is part of the mandatory requirements of Prof. Remigio Joseph De Ungria’s AGSB marketing management class.

The data included in this report are based on publicly available data such as those on internet websites, news, package declarations, public reports.

When appropriate, data are “masked” so as not to create unexpected conflicts.

The reports are posted and linked on slideshare, blogs and facebook so that there is easier sharing among students from different marketing classes.

Disclaimer

1. PTM for Aforvir are Physicians who prescribe antihistamines for children 6 months to 5 years of age who suffer from allergies

2. Physicians need a fast-acting antihistamine that has minimal drowsiness effect, is affordable and has a pleasant taste

3. 86 branded and unbranded products currently crowd this market, but the top brands come from 3 major companies – United Laboratories, GSK and Schering Plough

4. Most competitors focus on rational appeal to attract attention and engender recall and trial usage. Aforvir will use emotional appeal to create Point-of-Difference by highlighting the idea that “Love and Aforvir will re-unite children to their beloved pets” because of its fast-action, safety profile, affordability and great-tasting green-grape flavor

5. Market is currently P116 million and is growing at a CAGR of 16%

Aforvir PTM and Market

6. Aforvir (Cetirizine HCl) 5mg/5ml is an antihistamine that is bioequivalent to innovator drugs, but is more affordable and comes in great-tasting green-grape flavor

7. SRP of Aforvir is only P184.00 per 60ml bottle

8. Promotions efforts will center on highly skilled Medical Representatives who will regularly visit target physicians to “detail” pre-planned communications messages and use tools, such as samples and give-aways, to grab attention, create interest, persuade to try, and sustain prescriptions for Aforvir.

9. Aforvir is available in all major drugstore outlets nationwide

10. Aforvir will differentiate itself through its innovative emotional promotional campaign centered on the theme: “Love and Aforvir will keep us together – Reunited.”

Aforvir Marketing Mix and Strategy

Aforvir Primary Target Market

Physicians: Pediatricians, Allergologists, ENT, Dermatologists, General Practitioners who see children 6 months to 5 years of age who suffer from allergies

Highly educated professionals whose life’s work involves treating sick people to restore them to health

They are heavy users of antihistamines, writing more than 6 million antihistamine prescriptions for more than 4 million allergy patients (PMDI 2009 projected to 2012). The rapid growth in usage of antihistamines can be attributed to advances in medical science, and the introduction of more affordable brands.

Describe your PTM needs

7Reference: Maslow’s Hierarcy of Needs Marketing Management, 11th ed, Philip Kotler

2. PTM’s needs, wants & demands

Needs: To gain recognition as a competent physician among patients and peers; to feel appreciated and loved by patients for their compassion and help; to achieve high success rates in treating patients with allergies

Wants: Efficacy, minimal or no sedation, affordable, pleasant taste for children, reputable manufacturer, supported by clinical studies, professional staff, samples, promotional “noise,” practice support

Demands: Proven effective, affordable, pleasant tasting for children’s compliance, available, samples

3a. Direct and Indirect Competitors

The antihistamine market is valued at P116 million with a 5-year CAGR of 16%. There are 82 branded and generic products competing for this therapeutic class. The top 10 brands are:

Allerkid (UL) Alnix (UL) Virlix (GSK) Benadryl (J&J) Iterax (UCB) Zyrtec (UCB) Aerius (SP) Xyzal (GSK) Allerta (UL) Claritin (SP)

Factors that affect choice of brand include proven efficacy, side-effects profile, affordability, taste, company reputation, relationships, samples, promotional effort, practice support, clinical studies

Position Map for AntihistaminesPrice vs. Quality Matrix as of

2012High Price

Low Price

Highquality

Lowquality

UnbrandedGenerics

Benadryl

Alnix Allerkid

Virlix

Iterax

ZyrtecAerius

Xyzal

Allerta

Claritin

Aforvir

Benefit Positioning vs. Brand Map for Antihistamines as of

2012

Functional Benefit

Aforvir

Allerkid

Alnix

Virlix

Benadry

l

Iterax

Zyrtec

Aerius

Xyzal

Allerta

Claritin

Perceived Quality

Fast Acting

Non-Sedating

Pleasant Taste

Affordable

4. Gap between Customers and Competition

An opportunity is found in the unclaimed affordability and bioequivalence segment

Aforvir addresses the need for an affordable and pleasant-tasting antihistamine (Cetirizine) that is bioequivalent with innovator brands

Positioning: for children 6 months to 5 years of age who suffer from allergies, Aforvir (cetirizine) syrup is the antihistamine that meets the need for an affordable remedy that is also bioequivalent to innovator drugs. Unlike other antihistamines, Aforvir comes in unique green-grape flavor that children will love.

Antihistamine (IMS) Pediatric Preparations

Company Value Share % Growth Content

Segment 116,010,204 100% 9%

Allerkid Pediatrica 32,792,500 28.3% 30% Cetirizine

AlnixAlnix Westmont 29,825,000 25.7% 24% Cetirizine

Virlix GSK 10,480,000 9.0% -15% Cetirizine

Benadryl J&J 10,315,000 8.9% -19% Diphenhydramine

Iterax UCB 8,375,000 7.2% 30% Hydroxyzine

Zyrtec UCB 6,200,000 5.3% -19% Cetirizine

Aerius Schering 5,365,000 4.6% -16% Desloratadine

Xyzal UCB 4,432,500 3.8% -0.5% Levocetirizine

Allerta United American 3,527,500 3.0% -21% Loratadine

Claritin Schering 2,377,500 2.0% -26% Loratadine

Aforvir POGI 2,125,000 1.8% 160% Cetirizine

5b. Market Size and Aforvir Market Share (IMS)

1. Market Size P 116 million2. Aforvir sales P 2.1 million3. Aforvir market share 1.8%

5c. Estimate the market size using customer data

1. Usage per day or per year Per person

1 tsp (5ml) 3 times/day @ 7 days Ave cost per ml = P4.60 Ave. treatment cost per day = P13.80 Ave. treatment cost per week = P96.60 Ave. cost of allergy treatment per person per year

= P193.00 Number of patients treated (PMDI data) 4,000,000 Market size estimate = P 386,000,000

5. Actual Market Size

1. Competitor data= P116 million

2. Company data = P116 million P2,125,000/ 1.8%

3. Customer Usage data = P386 million

6b. Product Features

Aforvir (Cetirizine HCl) syrup 5mg/5ml 60ml bottle is an antihistamine that is indicated treatment of perennial and seasonal allergic rhinitis, chronic idiopathic urticaria and allergic conjunctivitis for children 6 months to 5 years of age. It comes in delicious green-grape flavor that kids will love

7. Price

P184.00 per 60ml bottle We use penetration pricing

strategy to grab market shares

MDC Price Cost/ dose Total Cost Savings

Aforvir Syr 5mg/5ml x60mlCetirizine (Pedia OG Care)

184.00 15.33 107.31 -

Alnix Syr 5mg/5ml x60mlCetirizine (Westmont)

243.25 20.27 141.89 34.56

Zyrtec Sol'n 1mg/ml x60mlCetirizine (UCB)

392.50 32.70 228.95 121.62

Allerkid Syr 5mg/5ml x30mlCetirizine (Pediatrica)

136.75 22.79 159.54 52.20

Claritin Syr 5mg/5ml x30ml Loratadine (Schering)

293.50 48.91 342.41 235.10

Aerius Syr 2.5mg/5ml x60mlDesloratadine (Schering)

457.00 38.08 266.58 159.27

Xyzal Sol'n 0.5mg/ml x75mlLevocetirizine (UCB)

255.50 17.03 119.23 11.92

Virlix Sol’n 1mg/ml x30ml Cetirizine (GSK)

232.00 38.66 270.66 163.35

Allerta Syr 5mg/5ml x60mlLoratadine (United American)

202.25 16.85 117.97 10.64

8a. Modes of Communication

1

1

23

8a. PromotionsTheme: Love and Aforvir will keep us together – Reunited! Medical Representative Visits and Detailing

4x for VIP MDs 3x for Junior Consultants with potential 2x for Fellows and Resident physicians

Sampling and Starter Dose Programs Premium and Service Item give away Sponsorship with Booth Exhibit in selected

medical conventions Personalized prescription pads Gifts for special occasion

Tissue Box

LiteratureSports Shirt

Banner

PatientRecordCard

SamplesEvents

Brand Availability Claims SRP Segments MRs

Aforvir Syr 60ml Cetirizine (POGI)

Syrup 60mlTaste,

Affordability184.00

Pedia, GP, FM

35

Alnix Syr 60ml Cetirizine (Westmont)

Drops, Syrup 30ml & 60ml

Effective and Affordable

243.00GP, FM,

Pedia60-70

Allerkid Syr 30ml Cetirizine (Pediatrica)

Drops, Syrup 30ml

Effective and Affordable

136.75GP, FM,

Pedia60-70

Zyrtec Sol’n 60ml Cetirizine (UCB)

Sol’n 30ml & 60ml

Quality, Innovator,

Tested392.50 GP, FM, Pedia,

Derma, ENT 60-70

Xyzal Sol’n 75mlLevocetirizine (UCB)

Drops, Sol’n 30ml & 60ml

Improved Cetirizine,

Non-sedating198.21

Derma? ENT?

60-70

8b. Competitor Promotions

Aforvir campaign stands out because of its distinctive emotional appeal

9. Place

Aforvir is available in all major drugstores nationwide

10. Generic Winning Strategy

Low Cost Producer

Supply and Distribution Leverage

Differentiation

Niche

1. PTM for Aforvir are Physicians who prescribe antihistamines for children 6 months to 5 years of age who suffer from allergies

2. Physicians need a fast-acting antihistamine that has minimal drowsiness effect, is affordable and has a pleasant taste

3. 86 branded and unbranded products currently crowd this market, but the top brands come from 3 major companies – United Laboratories, GSK and Schering Plough

4. Most competitors focus on rational appeal to attract attention and engender recall and trial usage. Aforvir will use emotional appeal to create Point-of-Difference by highlighting the idea that “Love and Aforvir will re-unite children to their beloved pets” because of its fast-action, safety profile, affordability and great-tasting green-grape flavor

5. Market is currently P116 million and is growing at a CAGR of 16%

Aforvir PTM and Market

6. Aforvir (Cetirizine HCl) 5mg/5ml is an antihistamine that is bioequivalent to innovator drugs, but is more affordable and comes in great-tasting green-grape flavor

7. SRP of Aforvir is only P184.00 per 60ml bottle

8. Promotions efforts will center on highly skilled Medical Representatives who will regularly visit target physicians to “detail” pre-planned communications messages and use tools, such as samples and give-aways, to grab attention, create interest, persuade to try, and sustain prescriptions for Aforvir.

9. Aforvir is available in all major drugstore outlets nationwide

10. Aforvir will differentiate itself through its innovative emotional promotional campaign centered on the theme: “Love and Aforvir will keep us together – Reunited.”

Aforvir Marketing Mix and Strategy