Rite med

10 Step Marketing Plan for RiteMed Metformin HCl08 January 2011

Justine Andrea C. Paredes * Marie Isobelle E. Ramos * Jose Mariano T. TanMikhail G. Tenazas * Maria Ellaine Grace K. Uy

Five StepsPart I of II: PTM and Positioning

1. Target Market: Diabetes Type 2 Patients2. NWE: Optimal Glycemic Control3. Choice: Branded and/or

Generic Medications4. Gap: Low-Cost High-Quality Drugs5. Market Size: PhP2.3 Billion (Total)

PhP1.5 Billion Niche

10 Step Marketing Plan for RiteMed Metformin: Justine Andrea C. Paredes * Marie Isobelle E. Ramos * Jose Mariano T. Tan * Mikhail G. Tenazas * Maria Ellaine Grace K. Uy

Five StepsPart II of II: Marketing Mix & Strategy

6. Product: Metformin HCl from RiteMed7. Price: 20-80% less of Branded Price8. Promotion: Redesigning RiteMed Logo

Branding the Product Maximize Price Leadership

9. Place: Unilab Network, Nationwide10. Strategy: Branded Generics

(Low Cost & High Quality)


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

Primary Target Market

Type II Diabetes Patients

Demographics: > 40 years old M > F * Social Class C to E Overweight *



Lifestyle: Minimal Physical Exercise High Consumption of Processed Foods High Sugar Diet


Health-Seeking Behavior



Health-Seeking Behavior




Consumption Behavior: 500 mg Tablet Two Tablets per Day Regular Hospital Monitoring Multiple Medications Lifestyle Changes


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

Maslow’s Hierarchy of Needs

Needs, Wants and Expectations

Realization of Goals

A Foundation ofGood Health


Developmental Stages of Erik Erikson

Needs, Wants and Expectations

Needs, Wants and Expectations Developmental Stages of Erik Erikson

Middle Adulthood (35 to 55)

Generativity vs Stagnation Diseases Produces Fear of Inactivity & Meaninglessness


Needs, Wants and Expectations Wants:

Quality Assurance Efficacy Low-Cost Limited Side Effects


Needs, Wants and Expectations Expectations:

Decrease Blood Sugar Level Good Glycemic Control Controlled Side Effects No Disease Progression Generics Price Range Good Value! Fulfillment of Brand Promise


Part 1: Step 3 of 5Direct and Indirect Competitors

Competitors

Boie Britton Health Saver Littman Metro Drug Metrolink Pharm Natrapharm

NextChem Pharma Nutria Sanofi-Aventis Winthrop Zuellig

Direct Competitors (Branded):


Competitors

The Generics Pharmacy Generika Pharmacy

Direct Competitors (Generic):


Competitors

Exercise Diet Herbal Preparations Insulin Secretagogues Thiazolidinediones

Alpha-glucosidase Inhibitors

Incretin-based Treatments

Amylin Analogs

Indirect Competitors:


Competitors

Efficacy: Glycemic Reduction Glycemic Control Reduction of DM Sequelae

Safety: Minimal Side Effects

Variables:


Competitors

Price Ease of Treatment Regimen Brand Perception Name Recall Physician Prescription Practice Accessibility Availability

Variables:


Position Map

Price Quality: Regulated (BFAD) Quality Perception

Variables:


Price-Brand Recall for Quality Matrix

Competitive Position Map

<50 50-100 101-150 151-200 >200

> P8.51

P7.25-P8.50

P5.76-P7.00

P4.51-P5.75

P3.25-P4.50

< P3.25Unilab

+ RiteMed

Zuellig

Brand Portfolio Size as a Function of Brand Saliency & Recall

BoieMetro DrugNextChemPharma Nutria

Britton

Pri

ce p

er

Unit

Littman

GenerikaThe

GenericsPharmacy

WinthropNatrapharm

Source: IMS 2003 & MIMS 2010

Price-Brand Recall for Quality Matrix

Competitive Position Map

<50 50-100 101-150 151-200 >200

> P8.51

P7.25-P8.50

P5.76-P7.00

P4.51-P5.75

P3.25-P4.50

< P3.25Unilab

+ RiteMed

Zuellig

Brand Portfolio Size as a Function of Brand Saliency & Recall

BoieMetro DrugNextChemPharma Nutria

Britton

Pri

ce p

er

Unit

Littman

GenerikaThe

GenericsPharmacy

WinthropNatrapharm

Source: IMS 2003 & MIMS 2010

Niche as High Brand Recall for Quality Low-Cost

Drug!

Part 1: Step 4 of 5Customer-Competition GapDemand-Supply Gap

Demand-Supply Gap

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.

Wide Market Distribution

RiteMed Metformin is the only product that:


Part 1: Step 5 of 5Market Size

Market Size (DOH Data & Journals) 3.4 Million Filipinos with Diabetes

94% Class C-E


Oral Anti-Diabetic Consumption 2007

Market Size (DOH Data & Journals)


94% Class C-E

31% Prescribed Metformin


Oral Anti-Diabetic Consumption 2007

Market Size (DOH Data & Journals)

Social Weather Stations (SWS) survey showed the percentage of Filipinos using generic drugs increased to 55 percent in 2008.



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 10 Step Marketing Plan for RiteMed Metformin: Justine Andrea C. Paredes * Marie Isobelle E. Ramos * Jose Mariano T. Tan * Mikhail G. Tenazas * Maria Ellaine Grace K. Uy

(Business Monitor International Data)

Market Size


Market Size (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: PhP 1.08 Billion


Market Size (Company)

RiteMed Revenue PhP 5.29 Billion

Share of Oral Anti-Diabetics 2.59% or PhP 1.5 Billion

Market Size: PhP 1.5 Billion


Market Size

Local Data: PhP1.2 Billion

International Data: PhP1.08 Billion

Company Data: Php1.5 Billion

Market Size: PhP 1 to 1.5 Billion


Marketing Mix StrategyPart II of II

Part 2: Step 6 of 10Product

Metformin HCl Leaders


Product Feature

RiteMed Metformin HCl


Product Feature

RiteMed Metformin HCl


Product Information

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.


Product Information

Administration: Administered with After Meals

Contraindications: Renal Impairment, Congestive Heart Failure, Acute or

Chronic Metabolic Acidosis.

Special Precautions: Elderly, Hepatic and Renal impairment


Product Information

Adverse Drug Reactions: Anorexia, nausea, vomiting, diarrhea, lactic acidosis,

decreased vit B12 absorption

Preparation: In 500 mg and 850 mg tablets


Part 2: Step 7 of 10Price

Price

20-80% Less Compared to Branded EquivalentsBrand

(500mg Preparation)Price per Tablet

(PhP)Percentage

Price Difference

RiteMed 3.09 -

United Lab Glumet 6.25 + 102.26%

Boie Metformin 4.00 + 29.4%

Britton Briform 4.50 + 45%

Pharma Nutria Nidcor 4.31 + 39.49%

Zuellig Diafat Sandoz 5.19 + 67.9%

Zuellig Fornidd 6.82 + 120.7%

Zuellig Glucophage 10.50 + 239.8%

Zuellig Humamet 8.00 + 158.9%

Zuellig Pharex Metformin 3.25 + 5.18 %10 Step Marketing Plan for RiteMed Metformin: Justine Andrea C. Paredes * Marie Isobelle E. Ramos * Jose Mariano T. Tan * Mikhail G. Tenazas * Maria Ellaine Grace K. Uy

Price

20-80% Less Compared to Branded EquivalentsBrand

(500mg Preparation)Price per Tablet

(PhP)Percentage

Price Difference

RiteMed 3.09 -

Metro Drug Panfor SR-500 6.50 110.36%

Metro Drug Diazen 3.50 13.26%

Metro Drug Glucoform 5.60 81.2%

Metro Drug Glucomed 3.42 10.68%

Metro Drug Neoform 500 3.35 8.41%

Natrapharm I-Max 5.60 81.22%

NextChem Insunex 3.50 13.27%

Littman Neomet 5.00 61.81%

Winthrop Metformin HCl 4.50 45.6 %10 Step Marketing Plan for RiteMed Metformin: Justine Andrea C. Paredes * Marie Isobelle E. Ramos * Jose Mariano T. Tan * Mikhail G. Tenazas * Maria Ellaine Grace K. Uy

Price

Cheapest Drug Available in the Market 43% Cheaper Than Industry Average

Main market strategy: Price leader Cheapest Alternative for Metformin While Assuring Quality and Efficacy of Product


Part 2: Step 8 of 10Promotion

Promotional Strategies

Advertisements Tri-Media

Public Relations Corporate Social Responsibility, Partnership with

Public/Private Sector(s)

Marketing Sales Representatives

Health Education Campaigns


Advertisements


Videos/Broadcast Media

Advertisements

View From: http://www.youtube.com/watch?v=n1LHtncXXPA&feature=related


http://www.youtube.com/watch?v=n1LHtncXXPA&feature=related

Commitment to Community & Health Education Campaigns

Corporate Social Responsibility

Educational Campaigns


Human Resources

Sales Representatives


I of III: Redesigning RiteMed Logo

Proposed Marketing Strategies

Maximize Brand Recognition between Unilab and RiteMed:

Highlight Features: Unilab for Quality & RiteMed for Price


Place a Brand Name to Metformin Generic Drug:

Key Features: Immediate Identification of RiteMed (Parent Brand) Brand Retains Generic Drug Name Aligned with Marketing Strategy of RiteMed Ownership of Product

II of III: Branding a Product



Maximize Position as Price Leader

Inform Target Market of Price & Price Difference

III of III: Maximize Price Leadership


P3.15


http://www.youtube.com/watch?v=n1LHtncXXPA&feature=related

Competitors

Boie Britton Health Saver Littman Metro Drug Metrolink Pharm Natrapharm

NextChem Pharma Nutria Sanofi-Aventis Winthrop Zuellig

Direct Competitors (Branded) with No Broadcast Media:


Competitors

Direct Competitors (Branded) with No Broadcast Media But Rely on: Medical Sales Representatives Giving free Product Samples Product Peripherals Sponsorship Programs (Events, purchases)


Competitors

Leading Pharmaceuticals with no Metformin Products: Pfizer Inc. Wyeth Philippines AstraZeneca Bristol-Myers Squib Novartis Abott Lab Roche Philippines

10 Step Marketing Plan for RiteMed Metformin: Justine Andrea C. Paredes * Marie Isobelle E. Ramos * Jose Mariano T. Tan *Mikhail G. Tenazas * Maria Ellaine Grace K. Uy


Competitors (Generic)

View From: http://www.youtube.com/watch?v=Z2ocsYU2i-s&feature=player_embedded


http://www.youtube.com/watch?v=Z2ocsYU2i-s&feature=player_embedded


Competitors (Generic)

View From: http://www.youtube.com/watch?v=OGufEVhhf3Y&feature=related


http://www.youtube.com/watch?v=OGufEVhhf3Y&feature=related

Part 2: Step 9 of 10Place

Available in Leading Pharmacies Nationwide

Place

Uses Logistical Leverage of Unilab


Part 2: Step 10 of 10Generic Winning Strategy

Generic Winning Strategy

Price & Quality Leadership Branded-Generics Strategy!

RiteMed’s Generic Strategy is to Dominate Low-Cost Generics Market by Providing High Quality Assurance of its Parent Brand, Unilab. Maximizes Research & Logistical Capacity Maximizes Unilab Brand


Generic Winning Strategy


SummarySteps 1 to 10

Five StepsPart I of II: PTM and Positioning

1. Target Market: Diabetes Type 2 Patients2. NWE: Optimal Glycemic Control3. Choice: Branded and/or

Generic Medications4. Gap: Low-Cost High-Quality Drugs5. Market Size: PhP2.3 Billion (Total)

PhP1.5 Billion Niche


Five StepsPart II of II: Marketing Mix & Strategy

6. Product: Metformin HCl from RiteMed7. Price: 20-80% less of Branded Price8. Promotion: Redesigning RiteMed Logo

Branding the Product Maximize Price Leadership

9. Place: Unilab Network, Nationwide10. Strategy: Branded Generics

(Low Cost & High Quality)


10 Step Marketing Plan for RiteMed Metformin HCl08 January 2011


All information obtained and presented herein are plainly for academic purposes. Please refrain from citing data without consent from authors.

08 January 2011


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