Care should be taken for a new launched product which as with newborn baby. It may happen that the newly launched product may get quickly accepted or needs lot of efforts to sustain in the market.
New product adoption process involves many external things like knowing doctor’s prescription habit, understanding therapeutic market potential intensity of market competition etc.
The objective to achieve high acceptance for new product needs product portfolio analysis and this exercise is to provide basis for allocation today’s resources to optimize returns by exploiting tomorrow’s market potential. Company can minimize their risk and achieve high degree of growth with this method.
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A suitable example of this of Cipla Ltd. as they are having optimum market share in anti-asthmatic segment and also dominates anti-bacterial market. Then they have analyzed product portfolio and had decided to enter into the anti – HIV market, which is fastest growing market. Now Cipla is offering a triple drug regime at very affordable price with considerable market share.
The success of the product at market place depends on its positioning. Product positioning the name it self indicates the process of establishing a product, person, event, company or even an object in the minds of the number of a target market in such a way that it is perceived to answer the needs of that market. Indian pharmaceutical industry is dominated by more than 9000 companies with over 60000 brands.
Positioning prescription-based drugs plays very important role. It is necessary for a marketer that he should not commit the mistake like new product fail to generate adequate sales or profits or new product hampers the sale of old or exiting product.
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On the other hand rightly positioned product yield high profit to the organization. The brand must be positioned in such a way that it IS concentrated towards target doctors or market place, secondly it fulfills all criteria like uniqueness perceived by doctors so as to sustain the product in market and fight against competitors.
The best example of above this is of Dibeta SR of Torrent Pharmaceutical Ltd. Metformin is an age-old molecule and clinically well tested molecule in the anti-diabetic market segment. The major players in these segments are ‘Glyciphage’ from Franco India and ‘Obimet’ from Knoll Pharma. But in the year 2002 Torrent has introduced ever since first once daily Sustain Release tablet of Metformin as ‘Dibeta SR’. This concept of once daily of Dibeta SR is well accepted by all doctors and helps to maintain its strong hold in diabetic segment.
So the product positioning with a unique feature has help to reach the product at top position. After a detailed and exhaustive study some ground rule are prepared for product positioning they are as,
1) Targeting Product towards Right Doctor, Right Market Place, at Right time with Right Efforts:
Every company teaches above theme to its entire field staff at their training program. The basic intention behind this was to capitalize the whole market. The success of product depends on its precise, non-ambiguous, no-nonsense positioning. The example of this is as, Tuberculosis in major life threatening disease in India.
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But today it can be curable. For multiple drug resistance tuberculosis (MDRTB) Ciprofloxacin is higher dosage of 750 mg proven to be a best drug of choice. Cipla has capitalized this new call of indication in MDRTB and positioned their Ciplox 750 mg tab in MDRTB. This type of product positioning helps Cipla to maintain their growth rate from 7lh position in 1997 to 3rd position in 2001 with a volume of Rs. 70 Crore capturing 4.36% of antibiotic market.
2) Snatching the Share of Brand Leader Needs Extremely High Efforts:
Always there exist some market place that is not exploited, some areas of therapeutic class not covered, some competition of product class not played. So here is the opportunity to position our product and set it. If today someone has to launch cough expectorant into the market then it is not possible to compete with brands like Corex (brand of Pfizer India Ltd) or Phensedyl (brand of Nicholas Piramal India Ltd). So easiest way is to go for niche marketing, concentrate at micro level with product differentiation and new class of indication under same therapeutic group.
The best example is the Cipla’s ‘Asthalin expectorant’, which is still leader in cough expectorant market. What they have done is they had started appointing Medical Representative as ‘asthma oral task force’ and vigorously promoted cough expectorant at general practitioner level. This strategy proved to be the best in industry for Cipla Ltd to capitalize the market.
3) Reposition the Brand to Compensate the Deficit:
It clearly means repositioning by changing frames of reference. It involves scraping out old strategy and introduction of new fresh competitive strategy to reposition the product into the market.
Cipla Ltd is having their brand of Rotahaler (a device used for inhalation purpose in asthma) with different look in year 1989. But in year 1996 they have changed their strategy and made some changes in Rotahaler as its transparency, efficacy, users-friendly, etc. this change brought a high degree of acceptance amongst the market and at launching they have sold lakhs of Rotahaler in India. Today Cipla Ltd is a major player in anti asthmatic segment with Rotahaler as a mega brand.
4) Understanding the Capacity of Mind of the Other:
Human mind is like a computer, incredible information it can store and process it. To accept certain new information prerequisite is the linking between prior information and knowledge. It should be linked by catchy words, which are used in day-to-day life.
The classic example of this is ‘sugar-free’ from Cadilla Pharma ltd, a low glucose preparation for diabetic patient, ‘Diaba tea’ an herbal preparation of tea for diabetic patient is another example of above this.
5) Market Credit is the Founder Stone for Building a Brand:
Today’s market is customer dominated not seller dominated. Everyone has to think of above the perception of consumer i.e. doctor with respect to product.
In final term company credit plays a vital role in building a brand.