Our potential target market is from age group 40- 65, which are having hyperlipidemia, CHD coronary heart disease,hypertension, type 1, and type 2 Diabetes, as well as people who have underwent cardiac catherization or having a history of cardiac surgery such as bypass surgery, arterial aneurysm etc.
The second type of category who are targeted is people who are chronic smokers, alcohol addicts who are very prone to cardiac disease such as atherosclerosis, or under potential risk due to hereditary factor and lifestyle factor eg obesity, sedentary life style.
Market penetration and coverage:
Dr. Reddy’s Lab is world known brand in Pharmaceutical industry. So, it’s an easy task for the Dr. Reddy to penetrate the pharmaceutical industry in Ireland. Company has decided to keep the price little low from its competitor product to capture the market share. Our medicine is more effective and having fewer side effects in comparison to the Lipitor (Competitor product). So, it can create an effect into the mind of patients that they can avail good quality of life with better medicine at lower price. The company has many discounts and offers for its distributors, retailers and middlemen.
Core component- The core component that is composition of the drug cannot be changed.
Packaging component- Packaging of the drug has to be made attractive and the written communication such as dosage, indications and contraindication has to be made clear and bold. We will be offering our product in blister packs in silver packaging of 10 tab strips 30 tab strips 60 tab strips.
Support services component- The support service component for our drug will be leaflet attached in box which be more informative regarding our drug specification, usage details contraindication and our helpline number to get more information of our product.
Objectives- The objective for our advertisement campaign will be to create awareness about our product and to create brand image in Ireland. This will be done through organizing CME and seminar in hospitals for doctors where our product details and its reported benefit will be highlighted and also evidence will be provided why our product is the best alternative against our competitor.
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Media mix- our media mix will be through printed brochure distribution regarding our medicine advantages and its various attribute, to the local clinics, hospital, general practitioner, and specialist doctors such as cardiac physician, cardiac surgeon also we will be distributing this brochures to whole sellers and retailers in order to create awareness for our brand and product like if a patient walk-in to these store this brochure will give primary information of the medicine effectiveness and its benefits so that when they re visit there G.P they can enquire about the medicine and can get prescribed accordingly.
Message- Our marketing message will be “Prevention for tomorrow” which means our drug will help you from combating ailment before it actually occurs. Thus our message is clear that by using simvastat you can prevent cardiac symptoms of hyperlipidemia.
Costs- our advertisement cost basically includes the cost for brochure, printed articles, cost incurred for conducting CME and workshops.
Objectives- The objective for sales promotion is to boost sales for our medicine simvastat and to gain a significant market share in Ireland.
Coupons- Our medicine simvastat will not be promoted via coupons.
Premiums- Simvastat medicine will involve premium, which will be meant for our distributors and pharmacist, on purchase or ordering in bulk such as if a retailer is ordering 10 box of simvastat that means 1000 piece 3 strip of 10 tablets will be given free. And for general practitioner there will be free strip or physician sample will be provided which will be 6 piece strip given on regular basis if a practitioner is regularly recommending our drug.
Costs- The cost for sales promotion will be salary incurred for medical representative, incentives to distributor and retailers.
For our simvastat personal selling will be medical representative who will be visiting hospital and clinics as well as practitioner in their assigned business area, to promote sales for our drug.
Other promotional tools
Other promotional tools will include organizing events for doctors on world heart day every year, for each community.
We are going to acquire a pharmaceutical company Gerard laboratories in Ireland
The first and foremost advantage of this acquisition will be getting the distribution channel of Gerard.
Dr reddy will be using technological as well as human resource of Gerard to develop market of simvastat.
Dr reddy will get in list of top ten pharma firm in Ireland.
Manufacturing process can be easily taken up and distribution can be easily facilitated.
It will take time to integrate and start production of our drug.
Channel of distributions
Retailers- There is many pharmacy retailers in Ireland across the country some of them are large retailer such as boots which has wider presence. Also there is Ireland pharmacy union which individually promote drugs, so our plan is to get a tie up with this union to promote our drug
Wholesalers’- our target is to get associated with renowned whole sellers across the country, such as Sundrelle Ireland. Which are very good in promoting and marketing pharmacy and well established name in wholesale pharmacy.
Warehouse- As we are going to acquire Gerard laboratories, so we will be utilizing the ware house of Gerard laboratories, which will help reducing our cost in storage and supply of drug.
Cost of shipment of goods-
This particular clause doesn’t apply to us because we are going to acquire Gerard laboratories in Ireland so there will be no shipping cost occurred as such.
The transportation cost will be from warehouse to the wholesaler which will be o .88% percent of the total sales of the specific product that is our medicine simvastat. (Burnell, 2008)
The handling expense for the medicine will be 0.3 percent of the sales figure achieved (Burnell, 2008)
There will be no custom duties incurred because we are not importing drug in Ireland.
Import taxes and value-added tax:
There will be no import taxes applicable in our case particular because of the fact that we are not going to import the drug. Vat charges for oral medicine is 0.0 (Medicine, Oral, 2009)
Wholesale and retail mark-ups and discounts:
The usual markup for wholesale medicine is 15% in Ireland on all drugs while the pharmacist markup is 50% on their purchase price. (Troy) While discount are 7-9% for the drugs (Troy) which is for ethical drugs.
Company’s gross margins
The net gross margin for pharmacy industry in Ireland is 32.3% without wholesaler rebate. (Lawler)
Retail price is usually 50% markup of the purchase price of the particular drug. However a 7-9% discount is a norm.
Method Of payment
The method of payment will be cash,cheque, demand draft or electronic transfer with a debt collection period of 30 days.
Pro Financial statement:
Figures are in millions In millions
Our product is a generic medicine simvastat from Dr reddy’s lab and it is used as lipid lowering drug in cases of Coronary heart disease and hyper lipidemia which is the prominent factor in causing coronary diseases. We are going to manufacture and market this drug in Ireland where coronary heart disease is a vital cause for mortality in the population, and to reduce quality of life among the individuals. Our target market will be the people who are currently suffering from coronary heart disease, hyperlipidemia patients as well as who are on potential risk of it, such as excessive smokers and alcohol addicts. The another class will be people suffering from diabetes mellitus type 1 and type 2 with potential risk of coronary heart disease. The mode of entry in Ireland will be through acquisition of Gerard laboratories over there. The advertisement campaign will be through regular CME and seminars for the doctors in the community health care services as well as working in hospitals and clinics across the country. Our product will be at par in terms of packaging and various attributes of it. Other promotional activity will be through sending representative to hospitals and clinics who will be in continuous touch with the doctors and will be creating awareness regarding our medicine benefits and effectiveness which will be reflected in doctor responsiveness to adopt the drug. The product awareness will be created through brochures and online resources to create a positive demand for the medicine. As mentioned we acquiring a company in Ireland so there will be no export cost as well as advantages of local production will get attached. One significant problem which can occur is integration of both the companies. Our distribution channel will be same as of acquired company which gives us cost effectiveness and a established company learning curve in that particular market. The warehouse for drug storage will also be from the acquired company which will reduce our cost of storage. Transportation cost will be typically 0.8 percent of the selling cost. Our gross margin will be 32.3 percent overall. Wholesaler margin will be 15% and retailer margin will be 50% of cost of purchase. Mode of payment will be cash, cheque, demand draft or electronic transfer.
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