RiteMed Metformin Marketing Plan by Justine Andrea C. Paredes

1. 10 STEP Marketing Plan for
RiteMed Metformin
Justine Andrea C. Paredes
November 2009
1

2. 5 Steps for Part 1
(PTM and Positioning)
1. RiteMed’s PTM are low-income Filipinos with
Diabetes Mellitus Type II
2. Who prioritizes health, wants affordable
medication, and expects quality
3. Can choose Metformin distributed by Zuellig,
Boie, Britton, Metro Drug, Natrapharm, etc.
4. Gap is all other brands are either too expensive or
are provided by companies that have low brand
popularity
5. The market size is Php 11 Billion. RiteMed
niche is Php 5.25 Billion.

3. 5 Steps for Part 2
(Marketing Mix & Strategy)
6. RiteMed Metformin
7. Sells Meftormin 20-80% cheaper than
equivalent branded drugs.
8. Uses media, public relations, and direct selling
9. Is distributed in all major pharmacies
nationwide
10. Uses affordability and effectiveness profile to
win the market

4. Part 1:
Steps 1 to 5
4

5. 1.RiteMed’s primary target market (PTM)
are the low-income Filipinos with Diabetes
Mellitus Type II
• Demographics
▫ Low-income
individuals with DM
Type II

6. 1.RiteMed’s primary target market (PTM)
are the low-income Filipinos with Diabetes
Mellitus Type II
• Lifestyle
▫ Blue collar worker or
unemployed
▫ Have unhealthy
lifestyles (high-fat diet,
no exercise)

7. 1.RiteMed’s primary target market (PTM)
are the low-income Filipinos with Diabetes
Mellitus Type II
• Behavior
▫ Prefer Generic
Medications from gov’t
hospitals, local health
centers, or community-
based outlets.
▫ Use medicines
inadequately and
irrationally.

8. 2. My PTM’s Needs, Wants, and
Expectations
• Based on Maslow’s
Hierarchy of Needs
HEALTH

9. 2. My PTM’s NWE
Low-income Filipinos with Diabetes Mellitus Type II
• Needs to fulfill their basic physiologic requirements
which include health.
• Wants a Generic Medicine that is affordable yet
effective.
• Expect quality service and value for money from
one of the most trusted brand: United Laboratories.

10. 3a. RiteMed’s METFORMIN
List of Competitors
• DIRECT
Boie, Britton, Health Saver, Littman, Metro
Drug, Natrapharm, NextChem, Pharma Nutria,
Sanofi-Aventis, Winthrop, Zuellig

11. 3a. RiteMed’s METFORMIN
List of Competitors
• INDIRECT
Diet modification, fitness gyms, self-
prescription, non-compliance
• VARIABLES
Age, price, packaging, frequency and
convenience of use, availability, brand
popularity, doctor’s prescription

12. 3b. Competitive Position Map
• 2 Most critical variables:
▫ Price
▫ Brand Popularity

13. RiteMed: Generic Medicine
Price/
Positioning
Matrix
Not Popular Popular Quite
Popular
Very Popular
High price
Low Price
Unknown
Price
Unilab
Zuellig
Natrapharm
Price vs. Brand Popularity Matrix
Boie
Health Saver
Metro Drug
NextChem
Littman
Pharma Nutria
Sanofi-Aventis
Winthrop
Britton

14. 4. RiteMed positions strongly as an
Effective yet Affordable Generic Medicine
RiteMed carries the only Metformin (Anti-DM
drug) that is…
• Generic and affordable yet effective
• Widely distributed in the market
• Known for its quality
• Backed up by United Laboratories

15. 4. RiteMed positions strongly as an
Effective yet Affordable Generic Medicine
No brand has a similar position.
Others are either too expensive, have limited
choices, not widely distributed or not as well
known in the market.

16. 5a. Based on competitor data
Source: http://www.gsk.com.ph/mssi.html

17. 5a. Based on competitor data, market
share is Php 8.036 B
• GlaxoSmithKline claims sales of about Php 1.125
billion.
• GSK has a market share of around 14%
▫ Then total market size is 1.125M/0.14 =
Php 8.036 B

18. 5b. Based on company data, RiteMed
market share is Php 5.25 B
• RiteMed Philippines claims sales of Php 105
Million
• RiteMed has a market share of around 2%.
• Then total drug market is Php 105 m/0.02 =
Php 5.25 Billion

19. 5c. Based on customer data, market size is
Php 2.4 B
• There are 3.4 Million Filipinos with Diabetes
▫ 31% are prescribed with Metformin
• Cost of treatment for the disease:
▫ P3.09 per tab x 2 daily x 365 = Php 2,257.16
• Total cost = (3.4 M x 31%) x 2,257.16 = Php
2.4 B

20. 5. In conclusion, the market size is
Php 2.4 B
• Competitor data = Php 8.036 Billion
• RiteMed data = Php 5.25 Billion
• Metformin Customer data = Php 2.4 Billion

21. Part 2:
Steps 6 to 10
21

22. 6a. Examples of Metformin Product Shots
GSK Avandemet
RiteMed MetforminMetro Drug
Euform Retard
Health Saver Formet

23. 6b. Product Description
• Contents: Metformin HCl
• Indications: Type 2 diabetes inadequately controlled by
diet and exercise alone.
• Dosage: Initially 500 mg every 12 hr, dose may be gradualy
increased to a max of 2250 mg daily.
• Administration: Should be taken per orem with food
• Contraindications: Renal impairment, CHF requiring
pharmacologic treatment, acute or chronic metabolic
acidosis
• Special Precautions: Elderly, hepatic and renal impairment
• Adverse Drug Reactions: Anorexia, nausea, vomiting,
diarrhea, lactic acidosis, decreased Vit B12 absorption
• Preparation: In 500 mg and 850 mg tablets
• Price: Php 3.09 per tablet (500mg).

24. 7. Price: RiteMed sells Meftormin
20-80% cheaper than equivalent branded
drugs.
Competitor (for 500mg
Metformin Preparation)
Price per tab (in
Php)
Price Difference
RiteMed 3.09
United Lab Glumet 6.25 102.26% more expensive
Boie Metformin 4.00 29.4% more expensive
Britton Briform 4.50 45% more expensive
Pharma Nutria Nidcor 4.31 39.49% more expensive
Zuellig Diafat Sandoz 5.19 67.9% more expensive
Zuellig Fornidd 6.82 120.7% more expensive
Zuellig Glucophage 10.50 239.8% more expensive
Zuellig Humamet 8.00 158.9% more expensive
Zuellig Pharex Metformin 3.25 5.18 % more expensive

25. 7. Price: RiteMed sells Meftormin
20-80% cheaper than equivalent branded
drugs.
Competitor (for 500mg
Metformin Preparation)
Price per tab (in
Php)
Price Difference
Metro Drug Glunid 3.20 3.56% more expensive
Metro Drug Panfor SR-500 6.50 110.36% more expensive
Metro Drug Diazen 3.50 13.26% more expensive
Metro Drug Glucoform 5.60 81.2% more expensive
Metro Drug Glucomed 3.42 10.68% more expensive
Metro Drug Neoform 500 3.35 8.41% more expensive
Natrapharm I-Max 5.60 81.22% more expensive
NextChem Insunex 3.50 13.27% more expensive
Littman Neomet 5.00 61.81% more expensive
Winthrop Metformin HCl 4.50 45.6 % more expensive

26. 7. Price: RiteMed provides a cheaper
Meftormin Drug excluding Pharex
Metformin
Competitor (for 850mg
Metformin Preparation)
Price per tab
(in Php)
Price Difference
RiteMed 7.83
Metro Drug Euform Retard 8.10 3.45% more expensive
Zuellig Diafat Sandoz 11.09 41.63% more expensive
Zuellig Humamet 13.33 70.24% more expensive
Zuellig Pharex Metformin 6.00 23% cheaper

27. 8a. Promo
RiteMed’s Present Strategies include the ff:
▫ Advertising via Television and Radio
▫ Public Relations: Corporate Social Responsibility
▫ Direct Marketing: Sales Representatives

28. 8a. Promo
Samples of Present Strategies:
Building the LOGO and Brand

29. 8a. Promo
Samples of Present Strategies:

30. 8a. Promo
Samples of Present Strategies:

31. 8a. Promo
What else can be done?
▫ Advertise in leading newspapers and magazines

32. 8a. Promo
What else can be done?
▫ Public Relations:
 Invest in sponsorship
of marketing events
 Set-up websites or
social networking
pages

33. 8a. Promo
What else can be done?
▫ Direct Marketing: Boost up Medical Representatives’
initiatives and coverage

34. 8b. Competitor Promo
• Branded Medicine Competitors:
▫ No Broadcast Media Advertisement
▫ Boie
▫ Britton
▫ Health Saver
▫ Littman
▫ Metro Drug
▫ Natrapharm
▫ NextChem
▫ Pharma Nutria
▫ Sanofi-Aventis
▫ Winthrop
▫ Zuellig

35. 8b. Competitor Promo
• Branded Medicine Competitors rely on:
▫ Medical Representatives
▫ Giving of free product samples
▫ Product peripherals
▫ Sponsorship programs (events, purchases)

36. 8b. Competitor Promo
• Other Leading Pharmaceuticals with no Anti-
Diabetes Products:
▫ Pfizer Inc
▫ Wyeth Philippines
▫ AstraZeneca
▫ Bristol-Myers Squib
▫ Novartis
▫ Abott Lab
▫ Roche Philippines

37. 8b. Competitor Promo
Other Generic Medicine Competitors:

38. 9. RiteMed is available in all Major
Pharmacies Nationwide

39. 10. RiteMed’s Generic Winning Strategy
• RiteMed aims to provide affordable yet safe and
effective, quality generic medication against
Diabetes Mellitus.
• It benefits from the distribution leverage of
United Laboratories.
• It distributes the cheapest Metformin 500mg
tablet nationwide.

40. 40

41. 5 Steps for Part 1
(PTM and Positioning)
1. RiteMed’s PTM are low-income Filipinos with
Diabetes Mellitus Type II
2. Who prioritizes health, wants affordable
medication, and expects quality
3. Can choose Metformin distributed by Zuellig,
Boie, Britton, Metro Drug, Natrapharm, etc.
4. Gap is all other brands are either too expensive or
are provided by companies that have low brand
popularity
5. The market size is Php 11 Billion. RiteMed
niche is Php 5.25 Billion.

42. 5 Steps for Part 2
(Marketing Mix & Strategy)
6. RiteMed Metformin
7. Sells Meftormin 20-80% cheaper than
equivalent branded drugs.
8. Uses media, public relations, and direct selling
9. Is distributed in all major pharmacies
nationwide
10. Uses affordability and effectiveness profile to
win the market

43. 10 STEP Marketing Plan for
RiteMed Metformin
Justine Andrea C. Paredes
November 2009
43