Insogum Marketing Plan

 

INSOGUM The Marketing Plan

Submitted To:  

Madam Seerat Fatima 

Submitted By:

ARIF Masood          UMAIR Mohayi‐u‐din    Rao FAISAL Sattar     AZIZ Hassan          AHSAN Riaz          SUNDAS Khan       

[50] [17]  [20]  [27]  [32]  [35] 

 

 

BS (Accounting & Finance) – (2006‐2010) 

 

BZU ‐ Multan, Pakistan. 

“Preface” Getting practical knowledge should be one of the major aims of any business program. Department of Commerce, Bahauddin Zakariya university, Multan has started following policy of assigning different practical assignments to its students so a touch of real working environment can be given to the students apart from classroom studies to widen their perspective.

A Marketing program is one of the core subjects which gives an insight that how marketing concepts are applied in practical world. Therefore study of the subject is incomplete without observing in real working environment. In this context, respectable, instructor Madam Seerat Fatima has assigned us to make a Marketing report on an innovative product of INSOGUM. This report consists of complete marketing plan that is prepared for INSOGUM product. We hope that the readers of this report will get valuable information about how an innovative medicine product can be marketed.

We are dedicating this effort to peaceful and prosperous future of our beloved homeland, Pakistan.

TABLE OF CONTENTS Preface

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i

Dedication

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ii

Table Of Contents

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iii

Executive Summary

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1

Mission Statement

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1

Situational Analysis

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2

Product Features

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2

Target Market

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3

Market Segmentation

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3

Positioning

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4

Competition

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5

SWOT Analysis

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5

Product Name and Logo

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6

Product Packaging

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7

Product Labeling

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7

Product Pricing Strategies

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8

Break Even Analysis

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9

Promotion Techniques

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10

Distribution Channels

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11

__ INSOGUM__

M ARKETING P LAN

Executive Summary: INSOGUM is an innovative product by The PLUS Pharmaceuticals. INSOGUM is a chew gum for diabetes patients to lower the diabetes level. It is easily available, easy to use, and highly effective product and its aim is to replace traditional medication techniques for diabetes like injections and offer medical treatment to diabetes patients through painless and freshening to medication techniques. ƒ Mission Statement: To preserve health and improve quality of life by providing thoroughly researched high-quality innovative medical solutions to the public through a highly capable and motivated human resource.

Situational Analysis: The PLUS Pharmaceuticals is in its first year of business as a start-up operation. The company believes in providing health products to market through innovative means. For which it conducts research. InsoGum is a result of long researches and could prove to be a product that can change the way of medication. Diabetes patients usually have to take injections as a medication; and injection comes with its own set of problems. To give injection doze there should be some expert, moreover taking injection is a painful process. So an alternative to injection for insulin is what market needs. There have been attempts earlier to bring alternatives for diabetes patients and introduction of insulin inhaler in 2006 by a US based company was also such attempt. Insulin Inhaler failed because of its high prices. Keeping in view present, past and future The PLUS Pharmaceutical is proud to introduce INSOGUM; a chew gum for diabetes patients. This product is easy to use, easy to market, easy to prescribe (as it is available in 2 potencies) and most importantly, it is available in affordable price.

PRODUCT Features: ƒ Easy to chew ƒ Non-Sticky ƒ

In natural fruit Flavor

ƒ Chew gum in pink color ƒ Size of chew gum will be half of average chew gum available in market.

Target Market: Target market is divided in 3 factors: 1. Diabetes patients in remote areas. 2. For those diabetes patients, who don’t want to go through painful procedure of taking injection. 50+ diabetes patients fall especially in this category. 3. Upper and upper middle class diabetes patients; who are early adopters of innovative products.

class adopters,  15 Remote, 35

Injection Factor,  50

Market Segmentation: Market is segmented on the basis of geographical and psychological factors. Remote areas target market fall under head of geographic segment. Injection and class factor market fall under head of psychological segment.

Positioning and Competition: INSOGUM is positioned in completely distinctive way as compared to its possible alternatives because of new and innovative features. Other insulin medicines (both injections and tablets) only aim medicine quality and performance of their product. In contrast; INSOGUM is a customer oriented product- whose goal is to providing medical treatment to diabetes patients through painless procedure. So INSOGUM focuses target market feelings along with their product quality. That is what makes INSOGUM special when compared to its competitors.

Competition: As it is shown in above graph, that INSOGUM is positioned in upper right corner of graph, which makes it high priced and high quality product. Its high price is justified because of its additional benefits which it delivers to its users. Also it is an innovative product and company is using market skimming price strategy to enter into market.

SWOT Analysis: The following SWOT analysis discusses to key factors that may positively or negatively affect the progress of product and company in the market.

ƒ Strengths: Competitive advantage because of extra features, innovative product.. ƒ Weaknesses: Short expiry dates because of product nature, Potency matching problem may be too complex for common users ƒ Opportunities: Additional product lines could be introduced for similar diseases after some research.. ƒ Threats: Doctors may hesitate in prescribing it in initial stages,.

Product Name, Brand and LOGO Product name is INSOGUM..

ƒ INSOGUM is combination of two words, which are INSO and GUM. The word INSO is taken from Insulin and word GUM is taken from Chew Gum. So product name gives an idea of product type and its features. ƒ INSOGUM is very Easy to remember & Pronounce and it gets very easily on anyone’s tongue. ƒ A Color combination of Blue and Red is used in product name and logo. It is Easy on eyes, Elegant as well as energetic. ƒ Logo contains Product name and company’s PLUS + sign in it..

Product Packaging: Packaging of a product is very important part of modern marketing plan. It should not only be attractive, easy to use but also safe. Here are some major points about packaging of INSOGUM, which will be available in form of 10 chew gums bundle primary packing. ƒ Hard plastic primary packing containing 10 chew gums. ƒ Primary packing plastic will be transparent and light blue in shade. ƒ Packing material will be of high quality. ƒ Sun light, Temperature, Humidity resisting packing,.. Enabling high life of product.

Product Labeling: As it is a medical product; so Descriptive Labeling Approach is used. PRIMARY Package Labeling: Product Name, Logo, Potency of Product, ingredients, MFG & EXP dates, Batch NO, Company Name, Registration Number. In SECONDARY Package labeling; in addition to all above elements, the number of units in each secondary pack & unit price of each chew gum will be mentioned too. Dosage guidance pamphlet will be included in packing; it will be both in Urdu and English language. Moreover, precautions will also be mentioned.

Pricing Techniques & Strategies: Pricing is thought to be most important P of the Marketing Plan. Price should be set which customer is willing to pay for product. INSOGUM is an innovative product and according to research and surveys people will be willing to pay prices little bit higher than market prices of INSOGUM’s rival products. Company has used market skimming strategy to enter into market and to overcome its initial costs and to reap benefits of introducing innovative product. That is why company don’t sees all of the diabetes patients as its target market as for now. Currently the target market is only limited to remote areas patients and injection fearing patients. Moreover, cost plus pricing technique is used to cover all costs and charge extra as a profit. Initially company is not offering much of incentives to its customers. But only in form of quantity discounts. Quantity discount offer is used as promotional technique and as a pricing technique to attract customers and to convince them to buy more quantity of product, especially in bulk quantity. Customer buying 5 or or more than 5 packets of INSOGUM (which means 50 or 50+ chew gums) will be offered a special discount of 15% on purchase. Company would also conduct financial analysis and forecasts, which will help it in determining its future strategies plan. On of important analysis is Break even analysis.

Break Even Analysis: The breakeven analysis show that what income its must generate for specific units and for specific period to meet it costs. Break even analysis of company show following points;

ƒ Unit Price: 470+30=500 retail price ƒ Unit Variable Cost: 300 ƒ Unit Fixed Cost: 110 ƒ Break Even Point: 410 ƒ Per unit Profit: 470-410=60

Unit variable cost of InsoGum is 300 and unit fixed cost is 110; which makes total unit cost to be 410. Company sells product forward on a price of 470; which is sold to final consumer at retail price of 500.

Promotion Techniques ƒ Electronic Media Advertisements: Electronic Media TV channels will be used as a major tool of promoting the product. Attractive and informative advertisements of product will be prepared as it is introductory stage of product. ƒ Brand Ambassador – Reference Personalities: Doctors and Famous personalities will be used as Brand Ambassador and Reference personalities. This will be done in order to get confidence of customer for a product which is first of its type in market and customer might show hesitation in using it. ƒ Message Designing: Message will be argumental in nature and conclusion will be drawn in message. ƒ Medical Representatives: Medical representatives will be hired and trained and send to doctors in target markets to convince the doctors on writing the INSOGUM and to create awareness about product. ƒ The Plus Pharmaceutical will distribute the samples of INSOGUM to doctors; so that they can be convinced. ƒ The PLUS pharmaceutical will also distribute the samples of INSOGUM by conducting medical checking camps of diabetes patients in famous clinics and hospitals. ƒ Awareness Creation stage: As it is new product so in start major focus of promotion will be to create awareness about product.

Distribution Channels and Techniques In initial stages, focus of marketing plan is to keep distribution costs low. Therefore narrowed indirect distribution channels will be used to distribute products. Moreover company has decided to go for selective marketing; since the product is new and company is not in mass marketing stage. Therefore, Company will sell its products to whole sellers, who will sell products forward to retailers.

Company Æ Wholesalers Æ

Retailers

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