Posted at 07.10.2018
We are surrounded by a world filled with new development products. Over hundreds of millions are spent every year on those new products. . Recently many professionals have became aware that buying innovation is critical for minimizing the gaps as well as for further increase in sales earnings. Advocure is one of the very most swiftly growing pharmaceutical companies in Egypt. The business strategy was that we look after health; we care for pharmacy. Therefore the company put the customer`s needs and benefits to produce a new product to gratify these needs. The company has CV and diabetes drugs which have high market talk about; recently we've detected a chance in the weight-loss medicines in the market. They invent a fresh dosage form for a medication as a chewable tablet. The business produced the product as a single program that is ideal for both children and adult and this differs only in the flavour. The statistics of people enduring of weight problems in Egypt are about 66 percent, including 25 percent of 4 years of age are fat that currently does not have any safe medicine designed for them. At this time the business found their opportunity to produce a new product that is safe for both children and adult. The company faced many rival products for example Xenical, Orly and Orlustate; most of them in a kind of a tablet never to be used for children less than 12 years.
The objective of this paper is to demonstrate the way the company deals proficiently with a new product development.
Once the chance is approved, the manager has to write down a document which includes steps to be followed to guide the business enterprise the proper way for new product development. That is called product creativity charter. (Merle C&Anthony D, p61)"A recently available study of mature executives found that creativity rates are greatly high in circumstances where PIC has complete and specific content and where there is standard satisfaction within the new products process within the company" Briefly, the business will focus on the new technology that will support the technology of the new medication dosage form of the medication (chewable tablet), that will meet the precise new section of obese children. The company`s goals will be performed through building a department for qualified research that can help the company to create new products with superior technology, and obtaining the company`s target of gaining 30 percent of the market share. The last step was to find and put some recommendations or guidelines of the street, for example, the company is depending on leveraged creativity to build up new market products. It also adopted a quick second admittance to the marketplace that can help the company to get a rapid, large show of the marketplace and achieve the company`s strategy, and put the first priority for the business is the customer health and safety.
After the PIC got targeted market segment or customer group which to focus, concept generation took place. You will find three inputs necessary for concept technology: form, technology and benefits, any two of them can be sufficient to build up a new product concept (Merle C & Anthony D). In my company we came to the realization that the best way is to provide the client needs the first top priority, and then the technology required to fulfill those needs and finally the proper execution of the product. For instance, we determined the customer need for a safe medicine for children therefore we used high technology necessary to produce convenient chewable tablets that is safe for both children and men and women. We simply started out with a couple of features (features, benefits, and function) that identify the new product, first the most notable managers identified the new product determinate attributes and rate it, and make up the managerial common sense they let customers to rate these capabilities, and then we used statistical strategy called factor research that helps to reduce the volume of attributes to few underlying dimensions that serve as the axes of the perceptual map. (Wikipedia website).
New Strategy 5 ORLY
0 4 12 14 Age
AR Perceptual map
The perceptual map suggests that consumers are concerned with the basic safety and age group, and there is absolutely no product in the market that is used for children. Therefore the gap here is between high safeness medicine and early age children.
After concept generation, it should be tested before starting development of the new product that begin exerting a real cost. The company used combined solutions to test the concept the following:
The new product is available in four natural flavours for obese children; it's the first remedies safe for children over 4 years.
It is your chance to safeguard your child of undesireable effects of Fatness. So, give your child once Daily tablet of his preferred flavour
We care your wellbeing, we care pharmacy
Then the selected customers are asked to complete the attached questionnaire. The company used conjoint evaluation to identify combination of customer features and likes which have been yet on the marketplace. The clients are asked to arrange combinations of product traits in reducing order of preference. Once personal preferences are rated, software applications may be used to reduce quantity of choices (sited in Quick MBA website). Therefore we're able to use reduced pieces of cards, and the most well-liked concepts should come at the top of the ranking.
For example, chewable tablet with cherry flavour and red shade design attained the most notable of ranking tastes.
One of most important points would have to be evaluated is the financial probable of the new product. Quite simply, how many people will ideally buy it (idea evaluation), and exactly how much sales income should be expected. Using ATAR model is a good mean to answer these questions (Merle C & Anthony D). ATAR stands for Awareness, Trial, Supply and Repeat. We estimate from marketing research that -in Egypt- 4 million of the children under 5 years are overweight.
All medicines bought from the local market
4, 000, 000
We'll plan a campaign to attain 30% of users
We will estimate that 50% of your customers will use the new medication dosage form of the medicine
A strong Supply chain, can make the supply high
High quality of the produce encourage the customer to replicate the usage
In L. E.
In L. E.
4000000x0. 3x0. 5x0. 9x0. 6x20
3, 240, 000
% market share
0. 3x0. 5x0. 9x0. 3
1. Target market: the first concentrate on is obese children over 5 years of age. The second concentrate on is standard adult use of other competitor products.
2. Product placement: safe for children, more rapid action and less gastrointestinal side effects.
3. Product attributes: the new chewable tablet completely dissolves in oral cavity that gives complete action and a minor GIT side effects.
4. Timing: we have 3 months to launch the new product
5. Development requirements: (Available) we have already other chewable development series tablets for other products (available technology)
6. Marketing requirement: we may use vacant spots in malls for extensive announcement for the new product, by using a well trained sales team and powerful circulation channels.
We also can use advertisements at T. V as there are high percentages of mothers interested on T. V. broadcasts.
7. Potholes: rules of ministry of health may hinder the rapid unveiling of the merchandise.
The main focus on in this level is to reach arranged design of the new product with R&D, tablet condition, size and the deal design. Product design can help build open public belief of the organization and in the long run, its corporate individuality. We had preferred a team of different persons from R&D, Marketing, Creation, Finance and sales team and we designed the work to enhance collaboration and cross practical development communication. We also analyzed a medication prototype with arbitrary population of obese children, under supervision of the ministry of health which could fasten the subscription stage of the merchandise. We have determined our new product with attractive offer coloring and fruits picture that attract the kids to it. We also include VOC in the design of safeness lock that shields the kid from chance absorption. The cover can open only when you first press down on it before rotating it which is often difficult for a child to do. We also known as the adult medication with "AVARA" with different coloring and design, to prevent the perception that it is only treatments for children.
We focused our ad on the targeted customers, so we published adverts in a medical newspaper that is delivered monthly for pharmacies for free, in addition to face understanding in vacant spaces in malls that gives the medical information; illustrate the undertaken diet and the new medication device to the moms.
We designed release strategy predicated on the historical past problems. For instance, whenever we used ATAR model, we extract that you will see a defect in customer recognition; therefore we target our effort in this field by increase the depth of the advertising campaign budget. We've preferred "PEPTO" as a brand of our own new product with attractive package coloring and fruits picture that get the children to it. We also known as the adult medication with "AVARA" with different colour and design, to avoid the perception so it is only medicine for children.
Manager can go through troubles in all proportions of the new product. Some of the problems may haven't any answer. Managers can package with this by steering clear of needless troubles, that require understanding the complete process, take management`s judgment at critical time, and follow up marketing with more aggressive unveiling management. corresponding to mother nature of the product, we should fasten the procedure of the development of the new product. in this product, it conceders new to the entire world product. So it is more important to ensure safe practices of the medication instead of fasten the development.