Situation Analysis (Marketing Plan): New Rx products for Osteoporosis disease



[Name of the Instructor]

[Date of Submission]

Abstract

The focus of this assignment is on one of the important component of marketing plan that is 'situation analysis for the launch of a new Rx drug for osteoporosis disease'.

Table of Contents

Introduction1

Situation Analysis: Micro Environment1

Positioning of Product1

Provision of meaningful benefits1

Pricing of the drug1

Convenience to buy2

Situation Analysis: Macro Environment2

Competitor Analysis2

Category Analysis3

Aggregate Market Factors4

Category Factors5

Environmental Factors (PEST Analysis)5

Conclusion6

References7

Situation Analysis (Marketing Plan): New Rx products for Osteoporosis disease

Introduction

Situation analysis is one of the important components of the marketing plan as it provides an opportunity to analyze the micro and macro environment for a new product in the market. This assignment is written with an objective to conduct a situation analysis for a new RX product of osteoporosis disease.

Situation Analysis: Micro Environment

The micro environment for new Rx drug can be analyzed in terms of following points

Positioning of Product

Product positioning is an element that remains meaning full to the target audience. The new Rx product will be positioned as one that increases the bone density of osteoporosis patients with minimum side effects.

Provision of meaningful benefits

Patients should be provided with a strong reason to buy that can only become possible with the help of introducing meaningful benefits to the target audience.

Pricing of the drug

The new Rx osteoporosis drug will be available to the patients at an economical price

Convenience to buy

The micro environment considers the convenience with which the target audience can become aware and buy the drug. The new Rx drug will be available through the distribution channel of pharmacies, physicians and ambulatory.

Situation Analysis: Macro Environment

Competitor Analysis

A strong competition is held in the osteoporosis drug market. Strong marketing tactics are used by the competitors so as to grasp a large share of this potential osteoporosis segment.

Three major players in osteoporosis drug market that could pose great threats for the launch of a new Rx osteoporosis dug include:

Merck having an osteoporosis drug with the name of Fosamax

Zometa drug from the platform of Novartis AG NVS

Evista from Eli Lilly and Company

Merck

Fosamax enjoys a dominant position in the osteoporosis drug market. The drug has estimated sales of more than $ 3.1 Billion in the year 2006, which reflects nearly half of the drug market capture by this medicine. In terms of revenue, Fosamax is considered as the third most important drug for Merck. The drug belongs to bisphosphonates category.

Novartis AG (NVS)

A point of differentiation for Zometa as compared to other competitors in drug market is on the basis of fact that the drug was initially launched for cancer, rather than osteoporosis. Bone fractures remain more common among the patients who suffer from certain types of cancers. Zometa has an aim to lower the probability of these fractures by enhancing the bone mineral density among the patients. The drug belongs to the same category as its biggest rival, Fosamax.

Eli Lilly

The third major competitor in the osteoporosis drug market is Eli Lilly with its drug named Evista. In the year 2006, $664 million sales ...