Webinar 4 Warner Lambert De-Brief

Niconil
Quit for Life

Niconil Starter Questions
1. Does the Case suggest this is an attractive market
to compete in?
2. Which are the target customer groups for Niconil

and examine how the brand can establish itself
against competitors?
3. Recommend a marketing mix for the launch of

Niconil.
Q1 Does the case suggest this is an attractive market
to compete in?
Porter 5 Forces..
1. Threat of entry (low short term - higher long term):
• 30% of 2.5million adults (Large market – but shrinking)

• Barriers to entry are relatively high (set up costs /
development costs) – but not insurmountable for an
incumbent
•
2. Power of suppliers: Low
• Not much info. in the case about this
• Drugs firms in a powerful position – access to a new market
(cross selling could make WLI quite powerful)
• Need each other however
Q1. Does the case suggest this is an attractive
market to compete in?
3. Power of buyers (Medium):
• Depends whether they are committed to quit or not
• Committed power (lowish) / serial quitter (higher power)
• Can chose not to quit (and risk health problems)
• Other products available (but success rates not so good)
4. Threat of substitutes: Lowish (price / intention)

• Accudrop / Nicobrevin – still involved consumption
• Nicorette – anti social gum/mouth cancers
5. Competitive rivalry: Low

• Has the potential to be higher
Overall, given health concerns, and low level of competitor products,

an attractive market to compete in (at the moment).
Q2 Which are the target customer groups for Niconil and examine
how the brand can establish itself against competitors?
G.P.’s
End user /
“customers”
Niconil
Target Customer Groups
Pharmacies Middle aged, “white collar”,
better educated, upper income
groups, especially women
Health Protection concerns
Previous quitters
Non smoking spouse or friend
Have children
Recovering from other illnesses
Workplace colleagues (peer
group possibly ..now)
Niconil – Competitor Map
NICONIL
£31.50
47.5% Effective
High But Skin irritation
ACCUDROP NICORETTE ‘badge of honour’
Less Tar but £14.00
still smoking Anti Social Gum
£5K Sales Mouth Cancers
10% Effective
Price
£170k sales Expected

AVERSION price line
THERAPY
SELF MONITORING NICOBREVIN
Ineffective Only symptoms
£75k sales
LOW
Low
Low Primary benefit: Smoking Cessation High
Non Prescription Prescription

Q2 Which are the target customer groups for Niconil and examine
how the brand can establish itself against competitors? :
• To establish itself against competitors the main issues are (some
repetition in the Marketing Mix):
• Brand recognition can be established early to ensure doctors prescribe
“Niconil” not another (late entrant) generic patch
• Most enthusiastic Quitters (the Early Adopters) will be most likely to
succeed and therefore increase trial (WOM)
• Understand the complex relationship model and what is appropriate for
each
• “Doctor only” and ads not allowed – education / trial
• Pharmacies stock the product – information based
• Prices and Profits will reduce as market matures
Pharmaceutical product life cycle
Increased
Competition
Reducing
High R&D and Profitability
Launch Costs
Sales
Profit
Time
Loss
Pre-Launch Introduction Growth Maturity Decline
Launch Short Growth

Penetration
Pricing
Q3. Recommend a marketing mix for the launch of Niconil
Marketing Mix: Product
 ‘Niconil’ – to be the generic name for nicotine patches (“Dyson /
Hoover’) – the “complete system”
 Build the brand / highlight the competitive advantage / create

awareness and knowledge
 Unique product / minimal side effects / support programme

 Launch 14 day Dose
 On par with cigarette cost consumption
 Need fast market penetration and price consideration(see PLC)
 Sell Support Package.....

Marketing Mix: Product continued
Support Package
 3 options in the case:

 Separate to everyone
 Separate (only to Niconil customers)
 Combined package only
 Separate to everyone – sold without prescription and can be advertised

to consumers + possible pull through impact on Niconil
 Promote and distribute through pharmacies – no need for regulatory

approval (branded “Niconil”)
 Could help awareness / assist doctors but, exposure through pharmacies
may be more beneficial
 Drive volume!
Marketing Mix: Price
• From the case..
• Penetration: £33.00 to maximise trial & adoption / establish strong

position early
• Still x 2 Nicorette at £14.00 (any more may have a negative impact)
• Higher price indicative of “unique” and better product – it’s about

quitting
• Price the Support Programme at £8.50 (£5.00 margin)

Marketing Mix: Promotion
• Maybe not enough information in Exhibit 3 to criticise too heavily?

• Targets for “promotion”: Pharmacies / G.P.’s (more technical)
• Niconil Logo on ‘No Smoking’ or “quit smoking” posters / flyers in
pharmacies and surgeries
• Emphasise results in all medical media, seminars e.g.
endorsement by opinion formers (possibly surgeons) / users /
quitters
Direct Marketing / sales

• Direct Mail to Doctors / response to trigger follow-up
• 16 reps / 6.5 calls per day = 1600 doctors over 16 days (could be
more targeted into white collar / city environments)
• Rapid market penetration
Marketing Mix: Distribution (Place)
• Little to say!
• Into pharmacies + promotional stocks
• Volume rebates for pharmacies across all WL products
• Regulated! There are rules.

Long term?
• Possible increase in capacity (new machine) – European
expansion? (nine months from “go ahead”).
• Think about impact on “copycat” new entrants
• No info. in case on patents
Post Script – What Happened?
• Sold at £33 in 14 day packs
• First 9 months sold 13000 – remember ...only 10% of smokers try and
quit per annum (est. 75,000)
• Breakeven in Year 1
• 60% growth in Year 2
• 57% Market Share for Niconil
• Nicorette 31% Share
• New Entrant: Ciba-Geigy (World No1) entered late
It worked!

Webinar 4 Warner Lambert De-Brief

Uploaded by

Copyright:

Available Formats

Webinar 4 Warner Lambert De-Brief

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Webinar 4 Warner Lambert De-Brief

Uploaded by

Copyright:

Available Formats

Niconil

Quit for Life

2. Which are the target customer groups for Niconil

3. Recommend a marketing mix for the launch of

1. Threat of entry (low short term - higher long term):

• 30% of 2.5million adults (Large market – but shrinking)

4. Threat of substitutes: Lowish (price / intention)

5. Competitive rivalry: Low

Overall, given health concerns, and low level of competitor products,

£170k sales Expected

Low Primary benefit: Smoking Cessation High

Non Prescription Prescription

Pre-Launch Introduction Growth Maturity Decline

Launch Short Growth

 Build the brand / highlight the competitive advantage / create

 Unique product / minimal side effects / support programme

 Sell Support Package.....

 3 options in the case:

 Separate to everyone – sold without prescription and can be advertised

 Promote and distribute through pharmacies – no need for regulatory

• From the case..

• Penetration: £33.00 to maximise trial & adoption / establish strong

• Still x 2 Nicorette at £14.00 (any more may have a negative impact)

• Higher price indicative of “unique” and better product – it’s about

• Price the Support Programme at £8.50 (£5.00 margin)

• Maybe not enough information in Exhibit 3 to criticise too heavily?

Direct Marketing / sales

• Regulated! There are rules.

You might also like