Segmenting targeting positioning of cezipro in ethical market

MINISTRY OF EDUCATION & TRAINING UNIVERSITEÙ LIBRE DE BRUXELLES HO CHI MINH CITY OPEN UNIVERSITY SOLVAY BUSINESS SCHOOL MBMM PROGRAM BUI KIM HOANG SEGMENTING – TARGETING – POSITIONING OF CEZIPRO IN ETHICAL MARKET FINAL PROJECT MASTER IN BUSINESS & MARKETING MANAGEMENT Advisor: Professor. Doctor. NGUYEN NGOC HOA Ho Chi Minh City, Vietnam 2007 This is my original work. Any data, result or quote in the project is clearly identified. BUI KIM HOANG ACKNOWLEDGEMENT I would like to take this chance to express my sincere thanks to Professor Doctor Nguyen Ngoc Hoa who helps me as my coach and guidance, supports and comments on my final project. In spite of the complexity and scope of the topic, he guides me with scientific instruction and valuable advice from the beginning to completion of this project. My great thanks also expressed to professors in the role of arguments and defense for contributing valued ideas, science and practices which really motivate me. I would like to thank deeply professors of Final project defense committee who spare their time to pay attention to my presentation, give comments and pose valuable questions, which help me to be more comprehensive of the Final project topic. My gratefulness extended to MBMM program, Professor Doctor Tran Anh Tuan and Professor Jean-Pierre Baeyens, Vietnamese and Belgian Professors, Coordinators of the MBMM Vietnam – Belgium program that I’m honored to pursuit through out last two years. Last but not least, I’m grateful to the Management board of Bristol-Myers Squibb Co., my classmates for providing me valuable support to finalize this project. BUI KIM HOANG LIST OFABBREVIATIONS - WTO: World trade organization - MOH: Minister of health - IMS: Intercontinental Marketing Service – Pharmaceutical research company - Ethical: Prescription product - OTC: Over the counter (no need prescription) - URS: Upper respiratory system which includes ear, nose, throat, - URTI: Upper respiratory tract infection - CAC: Clinical advisory committee - KOL: Key opinion leader of industry - GP: Group presentation - STP: Segmentation – Targeting – Positioning - ENT: Ear – Nose –Throat disease/ physician - GP: General practitioner - MVP: Marketing value proposal - Generic: Different Brand which has the same active substance but promoted in cheaper price due to no fee of research and development. LIST OF FIGURE AND TABLE Figure 1: Top ten leading corporations in Vietnam from IMS – 2006 Figure 2: Cefzipro product forms Figure 3: GDP and GDP per capita in Vietnam from 2004-2010f Figure 4: Expenditure for medicine by value and volume Figure 5: Share value by region IMS – MAT 2006 Figure 6: Michael Porter’s five forces Figure 7: Customer demand in importance ranking Figure 8: Trend of syrup usage Figure 9: Sales trend of brand-name and generic product Figure 10: Sales trend of brand-name syrup and sachet Figure 11: Main competitors in pediatric market Figure 12: Sales and share of Bristol-Myers Squibb Co. 2002-2006 Figure 13: Competitive strategy – Michael Porter Figure 14: Cefzipro sales in South Africa Figure 15: Model of Market segmentation from Professor Jean-Pierre Baeyens Figure 16: Segmenting on characteristic of Product/ characteristic of potential clients Figure 17: Segmenting on characteristic of product/ usage of product Figure 18: Full view of the two ways of segmentation Figure 19: Analyzing of targeting base on Characteristics of product – form / characteristics of potential clients – age Figure 20: Analyzing of targeting base on Characteristics of product – bactericidal spectrum/ Usage of product – diseases Figure 21: Targeting decision of Cefzipro Figure 22: Evaluation of Cefzipro and competitors Figure 23: Competitors’ positioning Figure 24: Cefzipro image Figure 25 : Communication Action plan CONTENT Page Chapter 1: Introduction 1 1.1 Company introduction 1 1.2 Product introduction 2 1.3 Project objective 2 1.4 Executive summary 4 Chapter 2: Environment analysis 5 2.1. External environment analysis 5 2.1.1. Development of Vietnam economy 5 2.1.2. Development of industry and threat from pollution 6 2.1.3. Development of education and interest toward health care 6 2.1.4. Social opinion toward pharmaceutical industry 6 2.1.5. Government policy toward pharmaceutical industry 6 2.1.6. Geography economic factor influences toward Pharmaceutical industry 7 2.2. Internal environment analysis 8 2.2.1. Power of customer 8 2.2.2. Power of competitor 10 2.2.3. Threat of new entrance and substitute product 11 2.2.4. Power of supplier 11 Chapter 3: Product SWOT analysis 13 3.1.Strength 13 3.2.Weakness 13 3.3.Opportunity 13 3.4.Threat 14 Chapter 4: Segmenting – Targeting - Positioning 15 4.1. Segmenting 15 4.1.1. Principle of Segmenting 15 4.1.2. Market segment base on Characteristic of product 15 4.1.3. Market segment base on Usage of product 16 4.2. Targeting 17 4.2.1. Principle of targeting 17 4.2.2. Targeting on characteristic of product 17 4.2.3. Targeting on product usage 18 4.2.4. Targeting of Cefzipro in consolidated view 19 4.3 Positioning 20 4.3.1. Principle of Positioning 20 4.3.2. Understand how target-clients make their choices 20 4.3.3. Describing and localizing the competition 22 4.3.4. Choosing a positioning philosophy 22 4.3.5. Seeking uniqueness and differentiation 22 4.3.6. Positioning statement 22 4.3.7. Key message 22 Chapter 5: Communication action plan suggestion 23 5.1. Objective of communication 23 5.2. Budget of communication 23 5.3. Tools of communication 23 5.4. Communication action plan 23 5.5. Communication monitor and audit 24 Chapter conclusion 25 1 CHAPTER 1: INTRODUCTION 1.1.Company introduction: is an American pharmaceutical Corporation, which is in top twenty in leading pharmaceutical corporation in the world. In 2006, the position ranking of the Corporation in Vietnam is number four (after GlaxoSmithKline, Sanofi-Aventis, Servier). Top ten leading corporations in Vietnam from IMS – 2006 2 THE VISION and MISSION of BMS Vietnam from 2006-2008: – Upgrade to 3rd position of leading corporation list in Vietnam and goes beyond Servier - French pharmaceutical company (occupying 3rd position) – In order to do that, its strategy is launching 3 potential products from global portfolio, especially in antibiotic sector, to gain more sales and share. For current product, it maintains market share of current products in efficient way – Re-target customer, develops new form of mature products, develops Customer relationship management program (CRM), develops promotional network and enlarge territory. One of new key products launch in 2008 is CEZIPRO with its objective: - To get benefit from the most growing market – antibiotic cephalosporin. - To replace some antibiotics which visa will be expired at the end of 2007. - To utilize reputation of BMS product quality. - To utilize strong sales force and their current relationship with customers. Figure 1 2 FINANCIAL GOALS OF CEZIPRO: To have sales of 1.8 $MM and occupy 20% market share at the end of 2010 (after 3 years launching). 1.2. Product introduction: What’s CEZIPRO? - CEZIPRO is in a class of medications called cephalosporin 2nd generation antibiotics. It works by stopping the growth of bacteria. Why is this medication prescribed? - CEZIPRO is used to treat certain infections caused by bacteria, such as bronchitis and infections of the ears, throat, sinuses, and skin. - CEZIPRO has two types of presentation:  Suspension syrup: bubble gum taste.  Tablet 250mg and 500mg Who can be prescribed? Diagnosed patients suffered from upper respiratory tract infection and skin infection.  Children over 6 months.  Adult. (see appendix 1 for more information) 1.3 Project objective: Acute upper respiratory tract infection is very prevalent in children in Vietnam. Without adequate treatment, it could spread of infection from other part of upper respiratory system, acute pneumonia… and even some dangerous complications such as acute rheumatic fever, acute glomerulonephritis. Addressing the demand of treatment, antibiotics are key strategic agent in treatment script and the demand of effective antibiotic is increasing together withbacteria resistance. Figure 2 3 Aware of potential antibiotic market, many antibiotics have been launched in Vietnam since 1995, but their promotional efforts have dispersed on all kinds of customers and not yet had clear position in customer’s mind. In a crowded market, it’s difficult for customers to make their choice. That is current issue of pharmaceutical companies and also an opportunity for a new antibiotic product which has a good strategy of Segmenting, Targeting and Positioning in customer’s mind. Bristol-Myers Squibb Co also wants to exploit this market by preparing for launching a new antibiotic – CEZIPRO in 2008; and they aware that Segmenting, Targeting and Positioning are vital steps, which will navigate marketing mix activities and lead promotional efforts to success. To do it well, having suitable theory and market information is critical, this project utilizes all support theory, product knowledge, available secondary data of market dynamic, insight survey of customer’s need and trend… to segment the market, target and position of CEZIPRO. This project includes: - Analyze external and internal factors of current antibiotic market, especially pediatric market which is potential for launching new product. - Define company and CEZIPRO strength and unique factor. - Conduct SWOT analysis of CEFZIPRO. - Segment of cephalosporin pharmaceutical market to find opportunity for CEFZIPRO. - Target most potential segment based on practical criteria. - Position CEFZIPRO based on customer’s demand and competitor analysis. [...]... utilize CEZIPRO spectrum and clinical support of product, so the chance of treatment success is higher So we can increase sales, share and image by effective product o Expenditure in this segment is higher which promises more benefit 4.2.4 Targeting of Cefzipro in consolidated view: So in conclusion of both two decision of above segmenting, the targeting of CEZIPRO is: Skin infection Bronchitis infection... 4/066/06 7/069/06 10/0612/06 So main competitor of CEZIPRO in market includes Not yet generic of CEZIPRO presenting in Vietnam 11 Zinnat of GlaxoSmithkline Promoted in Vietnam for long time ago, have good image and brand awareness Promotion investment is still strong with one of biggest sales team in Vietnam, having good clinical supports Ceclor of Eli Lilly Promoted in Vietnam for long time ago, image... 15 CHAPTER 4: SEGMENTING – TARGETING – POSITIONING 4.1 SEGMENTING: 4.1.1 Segmentation principle: Model of Market segmentation from Professor Jean-Pierre Baeyens: Figure 15 Utilized the Model, BMS identified such ways of segmenting: 4.1.2 Characteristics of product/ characteristics of potential clients: Base on available forms of Cefzipro prescribed for each age group, we have following segmentations:... CONCLUSION OF TARGET: Cefzipro targets on pediatric product/ pediatric form and on physicians who treat upper respiratory tract infection treatment (Pharyngitis/ tonsillitis, Otitis Media, Acute Sinusitis, Bronchitis) 20 4.3 POSITIONING OF CEZIPRO 4.3.1 Principle of Positioning: What’s positioning? Base on definition of Professor Jean-Pierre Baeyens: Positioning is to set… “The place we want to have in the... Staphylococcus aureus (including Haemophilus influenzae (including -lactamase-producing strains) -lactamase-producing strains) NOTE: Cefzipro is inactive against Moraxella (Branhamella) catarrhalis methicillin-resistant staphylococci (including -lactamase-producing strains) Streptococcus pneumoniae Streptococcus pyogenes The following in vitro data are available; however, their clinical significance is... marker growing faster (40%) versus HCM market (20%) These two markets are not only very potential, but also important because its hospitals are leaders in industrial: most of key opinion leaders of industry go to study in leading hospitals in HCM and HN and treatment trend of these cities has been considered as standard of industry Besides, there are a lot of prosperous patients come to be treated in these... for CEZIPRO is position on safety which characteristic is exceeding competitors’ As result, communication plan of CEZIPRO was built base on Segmenting, Targeting and Positioning above as action plan to make objective come true 5 CHAPTER 2: ENVIRONMENT ANALYSIS: 2.1 Internal environment analysis: 2 1.1 Development of Vietnam economy: Vietnam economy is increasing in recently year, GDP of Vietnam has increased... chloride, and sucrose Microbiology Cefzipro has in vitro activity against a broad range of gram-positive and gram-negative bacteria The bactericidal action of Cefzipro results from inhibition of cell-wall synthesis Cefzipro has been shown to be active against most strains of the following microorganisms both in vitro and in clinical infections as described in the INDICATIONS AND USAGE section Aerobic gram-positive... is not popular in Vietnam and in this area, Ceclor® gets better evaluation 22 4.3.3 •Describing and localizing the competition: As interview customers in field about their impression of competitor’s positioning and brochure studying: Competitors Positioning Describing Ceclor ® Antibiotic for respiratory Spectrum focuses strongly tract infections on respiratory bacterium Zinnat® Sustainable power to... reason why having a good sales force and distribution network in two biggest cities is one of key success factors 8 2.2 Internal environment: Model of analyzing: Michael Porter’s five forces 3 2.2.1 Power of customer: Figure 6 Due to instinct of antibiotic pharmaceutical market, the company has 2 kinds of customer: - Direct customer to company – Doctor in Medical center, Hospital and private clinic: who . 16 4.2. Targeting 17 4.2.1. Principle of targeting 17 4.2.2. Targeting on characteristic of product 17 4.2.3. Targeting on product usage 18 4.2.4. Targeting of Cefzipro in consolidated view 19 4.3 Positioning. Segmenting – Targeting - Positioning 15 4.1. Segmenting 15 4.1.1. Principle of Segmenting 15 4.1.2. Market segment base on Characteristic of product 15 4.1.3. Market segment base on Usage of product. MINISTRY OF EDUCATION & TRAINING UNIVERSITEÙ LIBRE DE BRUXELLES HO CHI MINH CITY OPEN UNIVERSITY SOLVAY BUSINESS SCHOOL MBMM PROGRAM BUI KIM HOANG SEGMENTING – TARGETING – POSITIONING OF CEZIPRO