However, there are different strategic course for Pfizer and Merck to be able to gain more profit in the market. The reason Pfizer becoming the market leader is basically because they used different marketing strategy compare to Merck. First strategy utilized by Pfizer is market accessibility as a new opportunity rises; it's time to enter the marketplace. For instance, at the time of market admittance Lipitor, lower cholesterol statin drugs have been limited with little awareness about the risks of high cholesterol. Furthermore, Pfizer helps bring about their product by the collaboration with the physician as they use the physician to prescribe the statins. The advantages for Pfizer as preferred and suggested by many doctors are the product can be trusted and reliable to the consumer. The other strategy is Pfizer route distribution is immediate to consumer which can maintain the marriage between buyer and vendor. Strong relationship performs an important role in order to provide better impression about the product. Next for prices strategy, Pfizer has increase the price of old drugs, developing new drugs because of the losing in structure protection. The great marketing mixture strategy utilized by the Pfizer drives them to be world's first US $10 billion per annum drug.
As a nearer rival in pharmaceutical industry, Merck has different strategy to be able to contend with Pfizer. Merck can be categorized as market follower and this strategy has added to the upsurge in sales from US$ 1. 8 billions in 1991 to US$ 17. 8 billions in 2001. The features of being market follower are "market fans will be cautious with segment marketplaces and they'll compete in areas where their advantages are highly valued. Besides, market follower usually will think more creative than a innovator market. "(Market Follower, 2003) The marketing mix utilized by Merck is they promote their product Mevacor as a market pioneer to educate open public of the hazards of high cholesterol. (Ahati, 2008) clarify that "Merck was much more interested on the research and the ability of the merchandise to sell itself, marketing would only be an accelerating factor to help sell the product. " Additionally, the pricing technique for Merck is they may be lowering the price tag on the drugs. It is because of advancements in processing efficiency and obstacle of generic competition.
The current position of the patent is almost expired. This means that it won't have the ability to protect the merchandise. This is a crucial time for Pfizer, the maker of the powerful cholesterol medicine since other manufacturers will soon be able to market generic alternatives for patients. Due to this patent concern, there are imitation of the other drugs on the market while the opponents offering at the cheaper price. Despite the fact that this is considered as a strategy for competition but Pfizer need to turn out with new strategy route and also related marketing aims for Lipitor because of the expiry of the patent.
Lipitor can be categorised as a "me personally too" product after the patent issue. However, there are many other ways for Lipitor to go up again in the pharmaceutical market. The very first thing is Lipitor should reposition their brand. Under the repositioning strategy, there are 4 things Lipitor can do. For example is repositioning the rival, tastes change, new opportunity found out and mistake manufactured in original position. Lipitor should enhance their brands names because without strong brands, it will not be success in the market. Hence, solving branding dilemma ought to be the top priority. For example, Lipitor should emphasize more in the acceptance and reputation on the brand itself such as using Co-pay credit cards. These cards receive to patients and are used as a second insurance to lower the away of pocket cost for the consumer (Pfizer's Big Problem: Lipitor Patent Expiration, 2011).
The other tactical way for Lipitor is they must do much better than competitors in term of marketing mix. More specific into rates strategy which Lipitor should reduce Pfizer's price in order to produce more at the low cost. Associated with with better methods and familiarity with techniques leads to accumulated experience of employees. Furthermore, produce more at the lower cost can gain more experience curve which can even make more profit in order to accomplish cost leadership. Furthermore, Pfizer should use hostile strategy which may offer lessons for medicine manufacturers facing similar losses of patent cover for other blockbuster drugs over another few years, and may chart a fresh course for shifts between the big pharmaceutical companies and common rivals.
Question 3
Based on the case study, Pfizer use different online marketing strategy in order to approach doctors and also consumers. However, the main part is how effective the strategy concerning maintain their consumers. Pfizer is using the consultant such as salesperson to inform the physician about their product in order to persuade the doctor to find the reputation and reputation. This plan is the most effective because without popularity, it is really hard to survive on the market. This is because the brand reputation is one of the very most valuable resources for each different product. Consumers choose the most valuable brand because of devotion and also satisfaction towards the brands. Hence, the reason why Pfizer persuade the doctor is because Pfizer needs to be popular in the pharmaceutical industry. For instance in the case analysis is Pfizer trained and tested around 13, 000 salespeople in order to success in Pfizer's sales marketing campaign in doctor's office. Due to this, the reputation helped make the Pfizer's sales reps the most successful in the industry.
Another way Pfizer did is they would like doctor's advice and thoughts and opinions through emphasis group. Concentrate group is a lot more effective due to the closer approach. In the event review, it was explained that even doctor were prescribing statin in data number, they were still spooked for the idea of recommending high doses. This consequence the FDA to approve starting dosage for Lipitor in range of 10 to 80 milligrams per day and it was the major advantages for Lipitor.
Moreover, Pfizer use another different advertising campaign towards the consumer and the most effective way is immediate consumer advertising. Pfizer present the meaning through advertising which is depends on the buyer on how they perceive the message. Predicated on the case study, the campaign aimed at conveying two text messages which are first, consumer need not be visible poor to possess dangerous cholesterol and second is consumer must know their level range of bad cholesterol in bloodstream. In case the reading below 100 means optimum while more than 160 considered risky. How effective is this plan is depends upon how consumer can take the message in a significant term. This is because consumer that concern about their health is more likely to know their condition much better than the buyer which is doesn't.
