Business can increase the market share

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Taking the pulse case study

This business report is going to analyse how the business can increase the market share of Zanidip to 6% over a three year period.

Introduction

This business report will be focusing on Zanidip which competes in the hypertension market. This report will be focusing on how Zanidip can increase market share to 6% in 3 years. Taking into consideration previous researches that have been conducted will help to analyse and find solutions for increasing market shares for Zanidip.

Analysis of the problem

Zanidip medication is a Calcium channel blocker used for the cure of hypertension. Lipophilic dihydropiridine discovered and developed by Recordati. Efficiency as best in class, superior to tolerability.

Zanidip medication is on the market in 92 countries. Second largest CCB in the 16 main markets. Leader in its class in France

The Patent expires end January 2010 in main markets. Standard competition will expected in France, Italy, UK, Germany, Spain, and other European countries

The main strategy will be to match, or nearly match, the generic price to keep sales volumes and in most markets, at the same price, the branded drug is preferred.

Promotion will continue in these markets where brands maintain their value.

As well another strategy than can be conducted will be in some markets where brands are more likely to lose their value, generic of lercanidipine will be sold.

Zanidip sales are expected to be around €200 million in 2009. Following from the look of general competition in main markets, sales in 2010 expected to be around €105 million. Further price erosion in 2011 expected to be around of 20%.

Alternative solutions

Zanidip in 2004 market shares in the UK were 1.2%. Seeing from the GP panel data shows that Zanidip was prescribed once a time during the year. This shows that the problem may occur from the GPs who do not prescribe this brand of antihypertensive very often to patients.

The typical prescribers of Zanidip were also prescribing other brands as well. This can come to a conclusion that the GPs prescribe brands that the pharmacy they cooperate with sell.

By a recent market study on medicine distribution it has been shown that the OFT (Office of Fair Trading) have expressed concern about a new limited distribution arrangements favoured by drug manufacturers. The traditional wholesale distribution model generally involves manufacturers selling to full-line wholesalers who then compete with short-line wholesalers and similar traders to sell on to pharmacies. DTP (Direct to Pharmacy) schemes involve manufacturers selling direct to pharmacies, using wholesalers simply to deliver the medicines in return for a fee. Such wholesalers are referred to as "logistics service providers" (LSPs).

http://www.olswang.com/newsarticle.asp?sid=112&aid=688 20/11/2009

Recordati the manufacture of Zanidip need to make a business plan that will help them increase the shares. There are many answers but to find the correct one that is perfect for Zanidip there will be a need of conducting some research.

Zanidip medications shown in the table for frequent and infrequent prescribers in the quarter (UK 2004) show that:

The average prescriptions given for this medicine from the GPS are 2.4%.

Meda a pharmaceutical company has completed a long-term license agreement with the European pharmaceuticals group Recordati on sole marketing rights to Zanidip (lercanidipin) in Sweden, Norway and Denmark.

According to the Competition Act 1998 decision of the director general of fair trading a prescription may be written either generically or by brand name. Where a prescription is written generically either by a hospital doctor or GP, the choice of brand or manufacturer is left to the pharmacist which dispenses the product. www.oft.gov.uk/shared 21/11/2009

Zanidip, which has been revealed, created and developed by Recordati, it is a third generation lipofilic, calcium opponent for the treatment of hypertension, which has shown a favourable combination of efficacy and tolerability. The market for calcium antagonists in Sweden, Norway and Denmark is approximately SEK 1 100 millions.

"Zanidip fits well into Meda's strategy to offer innovative and cost efficient products within prioritised therapeutic areas. Zanidip is a step to strengthen Meda's position in the cardiovascular field", says Anders Lönner, CEO of Meda 20/11/09 (http://www.cisionwire.com/meda/meda-signs-long-term-license-agreement-concerning-zanidip---lercanidipin)

Chosen solution with justification

The market target for Zanidip is the existing prescribers which are already in use if Hypertension medication.

By increasing the market share to 6% this means more expenses which means increasing overheads which most companies are not enthusiastic on that. The key to increase sales without increasing the overhead is emotional loyalty of the consumer to the brand that he is already using. Patients that are already on hypertension medication can have different feelings about same medication but from different brands getting prescribers of other brands to use Zanidip as prescribers can be informed on Zanidip are more likely to be better than other brand names which cause a prescriber some sort of uncomfortable feeling when using other brand names. As assumed, there is a strong correlation between emotional loyalty and brand purchases. But, importantly, that correlation is not linear. Increases at different levels of emotional loyalty result in different increases in sales for the brand. The greatest sales increases - by far - are produced only at the highest level of emotional loyalty, called "Bonding.

A customer's value to a brand generally grows steadily as their emotional loyalty intensifies, from Presence to Advantage, the level just below the top of the pyramid. But value leaps exponentially as customers move from Advantage to the very top of the scale - Bonding. In terms of sales, a bonded customer is worth two, three, or even four times as much as a customer at Advantage. Moving a customer from Advantage to Bonding usually produces an increase in sales considerably greater than the sum of all previous increases.

Your plan for implementation (be as specific as you can).

The plan that will help Zanidip sales increase by 6% over a three year period. First of all Zanidip has one manufacturer which is Recordati which will launch a brand expansion of Zanidip for better compliance concreting on getting new antihypertensive treatment around different countries of the EU which Recordati can agree to work with them.

Pharmaplan another pharmaceutical company is alreadyRecordati's licensee for the sale of its original productsZanidip (lercanidipine), Zaneril (lercanidipine+enalapril) andLomexin (fenticonazole) in South Africa. In Europe the marketing approval authorization (MAA) request forsilodosinwas submitted to the EMEA (European Medicines Agency), using the centralized authorization procedure, during November 2008 and approval is expected in the first half 2010.

As well Recordati's subsidiary BoucharaRecordati has launched in the pharmaceutical market a new brand extension by the name Zanextra (lercanidipine+ enalapril); it's a new antihypertensive treatment which is used in France, the largest market forlercanidipineworldwide. This new field is also available in other parts of the world like Germany, Australia, Ireland, Finland, Denmark, Greece, Spain, South Africa, the Netherlands, Belgium, Norway and Portugal. Recoradti accomplishes to increase market shares within the EU market by introducing new brand extension of their own brand Zanidip to other countries.

Another new agreement was concluded with Pharmathen S.A., a Greek pharmaceutical company, covering the exclusive, global and permanent license for Pharmathen's patent and technology as applied tolercanidipineIR (Immediate Release). The new lercanidipineformulation developed by Pharmathen will be available in two dosages: 8 mg and 16 mg. The increased bioavailability as compared to the formulation currently on the market allows for dosage reduction. Recordatifiled for marketing approval of this new lercanidipineformulation in a few European countries using the decentralized procedure and intends to eventually obtain approval in all countries where lercanidipineis currently marketed.

Down below this is a table showing how the sales for Zanidip have grown within a year by just getting more brand extension of the original medication in other countries as well.

Conclusion

To sum up this assignment analyses a case study for Zanidip and how market shares can increase by 6% over a three year period by introducing brand extensions for Zanidip. Recordati the pharmaceutical company of Zanidip has made agreements with other companies to sell the brand extension in other EU countries with as a result will automatically increase overall the sales for Zanidip.

References

  • Signs long-term license agreement concerning Zanidip (lercanidipin), 2002 [online 2009] Available at (http://www.cisionwire.com/meda/meda-signs-long-term-license-agreement-concerning-zanidip---lercanidipin) Accessed at 20/11/09
  • Office fair trading Competition Act NAPP PHARMACEUTICAL HOLDINGS LIMITED AND SUBSIDIARIES (NAPP) 2001 Available at www.oft.gov.uk/shared Accessed at 20/11/2009
  • OFT market study on medicines distribution in the UK, 2008 Available at http://www.olswang.com/newsarticle.asp?sid=112&aid=688 Accessed at 20/11/2009

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