Marketing Analysis Research Report for Cogmed drug
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Executive Summary
This report is meant to make recommendations, basing them on information got through my marketing research, as to the best method for marketing cogmed. Cogmed is a drug that fortifies memory and used in both normal and disease states. In this report, there are various aspects of the product as well as whether it would be good for the firm to invest. Before delving into the marketing aspects, the product is described in terms of its nature, appearance, safety, and how it works. The general acceptability of the drug in various parts of the world is also described. The marketing mix is an especially important part of this report and is thereby discussed in lengthy details. The product, promotional strategies, place, and price, or what people commonly call the 4 Ps is described in a comprehensive manner to enable the company understand the proposed product in entirety.
A section on the environmental scan also exists. An environmental scan is a study of factors, whether within an enterprise or outside, which might affect its normal operations in one way or the other. Factors such as the culture of the target customers and their economic background are discussed. In addition, a highlight on the effect of the technological environment of a business also comes under this section. At the end of the environment, scan section is the impact of government policy on the company.
Market segmentation is given special emphasis as is ethical issues associated with supplying memory tablets. Corporate social responsibility is also touched, but in passing, since the company already has a very comprehensive program on the same.
In consideration of the above facts, I recommend strongly that the company can begin selling cogmed.
Product
The product selected for this market research analysis is cogmed, which is a drug used to improve memory. Cogmed was chosen because people’s search for memory boosters is on the increase. As the age advances, most people find themselves developing mild failures in memory while others suffer from Alzheimer’s disease, which is associated with memory loss (Borda & Triggle, 2006). Every person is wondering whether he or she will be among the 10 million boomers that develop this degenerative disease. Others look for ways to fortify their memory with supplements, or even games. From the foregoing, the world is creating a high demand for memory enhancers, and this is the rationale for choosing cognex as the product to be analyzed in this report.
Marketing Mix
The product cogmed will satisfy consumer’s need of fortifying the memory. The drug has the ability to improve cognitive functions including memory, both in disease states and in normal memory failure. The current prices of memory booster drugs range between 1 to 3 U.S. dollars per tablet. For the company to make profits in this product, it has to go with the prices that have been arrived at through price wars and market forces. The price is quite sensitive to the customers because most people can afford a number of dollars in a day. As the price of cogmed has been affected by a series of price wars, and the cost has since stabilized, the company will not compete with other sellers. Rather, it will offer the drug at the current market rates (Beall, 2010).
The consumers will not have to travel to the company’s main outlet to get the drug. It will be distributed in all drug stores, including pharmacies and chemists all over the country, and enough of the product reserved for export. I will not advise the use any sales force to assist in the selling of this drug. The distribution channels will be made as short as possible to ensure the product reaches the final consumer in the shortest time span possible and in the correct form.
An aggressive mode of promotion will be adopted to promote the drug. Nevertheless, there exists regulations for promotion of drugs, but this differs depending on the state. In most states, live advertising on mass media is prohibited for some of the drugs that are categorized as schedule II drugs. In a bid to comply with these regulations, the company will promote the drugs with the aid of medical personnel, who will be given incentives if they recommend the drug to their patients. In addition, the company will hold general medical camps, and during such gatherings, some time will be spared to promote the drug.
Environmental Scan
Any business enterprise operates within a business environment, and our company is no exception. Obviously, there will be competition from other memory drugs that work the same way, have similar efficacy and possess the same safety profiles. However, the company will try to make its product distinctive by modifying the packaging and using colors with which customers are likely to identify. Only a thorough marketing research will determine the kind of packaging and color that might make consumers perceive the drug as being superior to others already in the market (Hague, Hague, & Morgan, 2004).
The technological environment is also crucial. The company intends to apply the latest technology when testing the efficacy and safety of the drug, as well as when submitting the provisional findings to the Foods and Drugs Administration. This technological advancement is already there, and the duty the company will have is to adopt it. Though this is expected to cost the company immensely, it will be worth in the long-term. Among other technological advances, the company will create an electronic portal where the users of the drug will submit any concerns connected with the use of the medication. Furthermore, any complaints, or clarifications will be dealt with at that forum, whose creation is vital due to the unpredictability of cogmed.
The economic and social environment is another important factor that will affect the sale of the product. The economic background of the target population, their expectations, as well as their socio-cultural practices and beliefs will affect their willingness and ability to purchase the product. Keeping in mind one requires to take at least three tablets in a week, the company will have to target well-to-do families and students who are revising for their exams, the latter of whom might have no other option. In some areas, people do not take memory pills for Socio- cultural reasons. They believe the drugs change the way the nervous system is supposed to work naturally. Such believes are likely to retard the speed of incorporation of cogmed into the market.
There will also be government policy seeking to regulate the sale and distribution of all schedule II drugs. In most states, it will be required that these drugs are only dispensed when the customer is in possession of a prescription from a registered medical practitioner. Such restrictions on the purchase of the drug are likely to lead to declining sales because most people like taking memory boosters in the absence of any organic brain disease. They will probably not have seen a physician before they come for the drug. In any case, such a step will mean digging deeper into the client’s pocket.
Market Segmentation
Market demographics and/or psychographics will be taken into account for identification, measurability, accessibility, and appropriateness. This research confines itself to demographic and psychographic strategies, as others might not be significant for this product. The market will be defined and then subdivided into an enormous homogenous unit so that obviously identifiable segments are created. Such segments will have the same wants, demand, or need dynamics. The objective of the segmentation based on market demographics will be to design a mix that is a precise match of the customers’ expectations in the target segment. The rationale for the segmentation will be to compensate for the small size of our firm, as supplying the needs of the entire market will be difficult. The breakdown of the demand into numerous segments will facilitate the selection of those that the firm can handle comfortably. For instance, those people who will need to fortify their memories but do not suffer from any degenerative brain disease will be the most. This group may react to promotional strategies used by the company, but the sick group will seek the drug only if the physician they see prescribes it (Diggines & Wiid, 2004).
Ethical Issues
The sale of drugs of any kind comes with ethical implications. A company dealing with pharmaceutical sales has a primary responsibility of putting the well-being of their clients above any other concern. Our firm will be no exception. Clients who come to us will be varied; there are those bearing a prescription and those seeking the product as an over the counter drug. One might find that some people in the latter category do not qualify to take the drug as their memory is within the normal range for an average person (Dean & Morgenthaler, 2009). The company’s sales representatives will be required to discourage such individuals from taking the drug and withhold dispensation of the drug to such people. In addition, the sales force will have a duty to educate the clients on the product, namely the likely benefits of the drug as well as the safety profile and the adverse effects. This will assist the customers to make an informed decision Our Company is also likely to be tempted to overuse ethical promotion, where advertising is done through doctors. The mode of interaction between doctors and the company should reflect ethical and moral values. The company is allowed to convince doctors of the efficacy of their product, but not to go to the extent of giving gifts and offering contracts to them.
Social Responsibility
The company should engage in activities meant to improve the livelihoods of the community in which it is operating. An example of corporate responsibility issue the company should consider is holding medical camps. During such camps, the company can hire medical specialists from various disciplines to serve the community in a particular day, or even a week. The aim would be to give back to the society, and not to advertise the firm’s products. The company can also participate in relief services where disasters occur. It is worth noting some of the substances for manufacturing some of the drugs are derived from natural products like trees. Because of this, company should be in the front line when it comes to conservation of natural resources such as forests.
Global Marketing and the Internet
The company could reach many customers by marketing its products in the internet. More people are likely to use the major search engines to research on their problems, and a client seeking to boost his or her will come across cogmed if it is advertised online.
Recommendation
I find cogmed an attractive product to sell provided online marketing is intensified. Posting numerous articles on memory boosting that mention cogmed severally would make it easy for customers using the major search engines to come across the advertisement easily.