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Datril Marketing Strategy

Autor:   •  December 26, 2017  •  1,547 Words (7 Pages)  •  925 Views

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– Contains no aspirin, easier on the stomach than aspirin, no other aspirin side effects, fast effective pain relief, reduces fever of colds and flu;

• Service – Alternative product supplied by physicians;

• Brand – Levering existing BM brands including Bufferin and Excedrin;

• Price – Minor price differential to Tylenol, uninformed consumer making on the spot decision as to which product to buy based on price. Designed not to antagonize Tylenol into a price war;

• Incentives – Provide premium displays and promotional material for products, incorporating existing products and leveraging existing brand loyalty (Bufferin, Excedrin etc.). Offering favourable terms of trade (increased days to pay, free shipping etc.). Provide free samples for physicians to give to patients;

• Communication – BM manufacturers of Bufferin and Excedrin have a new alternative to aspirin for those who suffer side effects – Datril;

• Distribution – Grocery stores and pharmacies, supermarkets.

These benefits create a compelling OVP (Exhibit 5) for both the trade and consumer, which in turn will build brand equity for BM.

Action Rationale

The proposed action is the best approach to take advantage of the identified opportunity for the following reasons:

• BM already has established brands and has successful pain relief products in the market already;

• A multi-channel advertising campaign consisting of marketing directly to consumers to increase brand awareness and an indirect advertising campaign aimed at retailers and medical professionals highlighting the benefits of Datril will result in increased sales across all BM product lines as well as building brand equity

Conclusion

The above analysis reflects our strong belief that the proposed action to introduce Datril to the market as an alternative to aspirin and leverage the BM brand will deliver the best long terms sales for all the BM pain relief products and the best profit margins.

Exhibits

The above analysis is supported by the attached exhibit(s) as follows:

Exhibit 1: Defensive Marketing Strategies

BM has the luxury of controlling where it wants to position itself in the market at the initial launch. Rather than focusing on an economy offering, this proposal suggests that BM position Datril towards the premium offering side of the graph, leveraging the strong brand and market recognition of that brand synonymous with quality pain relief. As this strategy is not competing on price it is not anticipated that the market incumbent will only have the option of matching our introductory price or trying to increase the benefits to the customer however given the nature of the product this is deemed to be unlikely.

Exhibit 2: Distribution Channel Structure

Exhibit 2 graphically shows the hybrid marketing strategy. The strategy not only gives Datril the best chance of success, but it also creates value for physicians as they have an additional well known product that they can recommend to consumers. Supermarkets and pharmacies receive value in the form of increased shoppers who are visiting outlets to purchase Datril or other BM products giving the outlet the ability to upsell these shoppers.

Exhibit 3: Ansoff’s Product-Growth Matrix

The product development strategy involves the company creating new products and marketing them to an existing customer base to achieve growth. In this case Datril is being marketed to the analgesic market as a substitute to aspirin based products.

Exhibit 4: Branding as Value Creation

In order for the launch of Datril to be successful it needs to demonstrate value creation among key market entities (target customers, customer value, company value and collaborator value) which in turn creates brand value. The success of Datril as a product will be determined by its ability to create superior value for its target customers, its collaborators and in a way that benefits BM.

Exhibit 5: Marketing Tactics

The marketing tactics define the key aspects of BM product offering Datril. These tactics form the basis for the creation of the Optimal value Proposition (OVP) which enables the company to execute on its launch strategy and for marketing to the target market.

References

Ansoff, H. I. (1957). Strategies for diversification. Harvard business review, 35(5), 113-124.

Chernev, A. (2009). Datril: Pioneering the Acetaminophen Market. USA, Northwestern University: Kellogg School of Management.

Chernev, A. (2014). Strategic marketing management (Vol. Eigth Edition). USA: Cerebellum Press.

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