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$2.28 Billion in Sales

Glucophage XR

Promotes brand name

Q2. Do you think

BMS's use of pull promotional

strategies affected brand recognition and customer loyalty?

Q3(a)

Do you think Glucophage XR sales will increased enough to offset sales lost from generic competition with Glucophage?

Q3(b).

With exclusivity on Glucophage XR

running out, do you think BMS

can effectively market Metaglip to

offset sales lost to generic competition?

Metaglip does have the opportunity to regain some market share

  • Variation and improvement of Glucupage & Glucuphage XR
  • Product exclusivity for atleast 3-5 years

Q4(a): What is your view of DTC

Advertising for Prescription Drugs?

Q4b Do you feel it is effective means of marketing prescription drugs compared to more traditional push strategies such as detailing and trade show promotions

“does not promote long-term

patient use, which is ultimately

the estimate of product value”

Brand awareness

+

Encourages brand preference

Coupons

Effective Pull Strategy

Prospect Theory

Market Share Increased Sales

Brand Loyalty Consumer Awareness

Cannot offset losses

(cc) photo by medhead on Flickr

Glucophge

XR

Glucophage

Loss to

Generic Brands

2001 - $2.049 Billion Sales

2002 - Decrease to $350 Million sales - 88%

Glucuphage XR increased in sales by 200% between 2001-2002 from $14m to $62million not enough to offset losses in sales to compete with generic branded drugs

Pull

  • Complicate Doctor & Patient relations
  • Mislead Patients

Q5(a)

What effects do pull strategies for

prescription drugs have on the distribution

channel for pharmaceutical companies?

Damaged channel relationships

Reduced communication

with Doctors & Pharmacists

Outcome of Pull Strategies

1. Distribution channels benefit economically

2. Damages manufacturer & intermediary relationships

Strategy

6 Million are unaware they

are diabetic

1 in 3 Depression sufferers do not seek treatment

More informed

Informed

Misled

  • Increased visits to Doctor
  • Growth in Pharmacy Sales

Pull Promotion - Double-Edged Sword

Premium priced

medication

High Expenditures

Competitive advantage

in patent period

Loss in sales

to generic

brands

DTC advertising needs to be

complimented with Traditional

forms of push strategies

Bristol-Meyers & Squibb

Push vs. Pull Promotion

More effective in lowering

Blood sugar levels

Consume once daily only

Coupon Pull Strategy

Direct advertising to market

Patent period ending

For Type II Diabetes

Do you think BMS's use of DTM advertising

and coupon campaign, as pull strategies

to promote Glucophage XR were successful?

Coupon strategy to

establish brand name &

value for Metaglip

$81 Million in advertising

Class Discussion Questions

1. Did BMS use a Push Strategy or Pull Strategy

for Glucophage XR?

2. How many days of free use did the Glucophage Coupon entitle consumers to?

  • a) 60
  • b) 30
  • c) 7
  • d) 10

3. The sales of Glucophage XR cannot offset

the sales lost to generic brands of Gluphage?

  • a) True
  • b) False

4. DTC advertising needs to be complimented with

Traditional advertising strategies.

  • a) True
  • b) False
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