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W’s What: Rogaine was approved for sale without prescription or over-the-counter by the FDA. The company has requested from FDA a three-year period of marketing exclusivity for non-prescription Rogaine under the Waxman-Hatch Amendments to the U. S. Food, Drug and Cosmetic Act prescriptions. When: Rogaine was approved for sales OTC in February 1996 and the marketing exclusivity process occurred throughout April 1996. Where: Rogaine wants this marketing exclusivity in the United States. Who: Pharmacia & Upjohn, Inc. -Rogaine Hair Growth Treatment

Why: Maximize Rogaine sales in the U. S. market and position the only product available without a prescription. How: Extensive marketing programs for Rogaine which targeted men and women ages 25 to 49. It would be positioned as the only medically proven hair regrowth treatment that was available OTC. It would be made widely available in food, drug, and mass-merchandise outlets. Four P’s- Product: OTC Rogaine Hair Regrowth Treatment Place: United States Price: Suggested retail price for one bottle, which is equivalent to one-month supply, is $29. 50.

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Prescription Rogaine was approximately double that price for a one-month supply as well. Promotion: The company requested a three-year period of marketing exclusivity for non-prescription Rogaine. A part of the marketing strategy would be allocated for the first six-month period of the Rogaine and related Progaine shampoo. Consumer advertising would be a big part of the marketing strategy as well. Rivalry- -Industry growth is high -Product differentiation is low -Brand identity -Niche, quality -Diversity of competitors -Switching costs – Rivalry- -Industry growth is high Product differentiation is low -Brand identity -Niche, quality -Diversity of competitors -Switching costs – Barriers to Entry- (High) -Time and cost of entry -Brand Identity -Economies of scale -Switching costs -Government policies – Barriers to Entry- (High) -Time and cost of entry -Brand Identity -Economies of scale -Switching costs -Government policies – Threat of Substitutes- (High) -Buyer propensity to substitute- Generic -Relative price performance of substitutes -Substitute performance -Switching costs Threat of Substitutes- (High) -Buyer propensity to substitute- Generic Relative price performance of substitutes -Substitute performance -Switching costs Supplier Power- (Low) -Differentiation of inputs -Ability to substitute the product -Switching costs -Supplier concentration Supplier Power- (Low) -Differentiation of inputs -Ability to substitute the product -Switching costs -Supplier concentration Buyer Power- (High) -Substitute products -Buyer concentration vs. firm concentration -Price sensitivity Buyer Power- (High) -Substitute products -Buyer concentration vs. firm concentration -Price sensitivity Strategic Position Strategic Position

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