Strategic Direction For Pfizer And Merck

However, there are different strategic way for Pfizer and Merck in order to derive more net income in the market. The ground Pfizer going the market leader is because they used different selling scheme comparison to Merck. First scheme used by Pfizer is market entry as a new chance rises ; it is the right clip to come in the market. For case, at the clip of market entry Lipitor, lower cholesterin lipid-lowering medicine drugs have been limited with small consciousness about the hazards of high cholesterin. In add-on, Pfizer promotes their merchandise by the coaction with the physician as they use the physician to order the lipid-lowering medicines. The advantages for Pfizer as preferable and suggested by many physicians are this merchandise can be trusted and dependable to the consumer. The other scheme is Pfizer channel distribution is direct to consumer which can keep the relationship between purchaser and marketer. Strong relationship plays an of import function in order to give better feeling about the merchandise. Following for pricing scheme, Pfizer has increase the monetary value of old drugs, developing new drugs due to the losing in pattern protection. The great selling mix scheme used by the Pfizer drives them to go universe ‘s first US $ 10 billion a twelvemonth drug.

As a closer challenger in pharmaceutical industry, Merck has different scheme in order to vie with Pfizer. Merck can be classified as market follower and this scheme has contributed to the addition in gross revenues from US $ 1.8 one million millions in 1991 to US $ 17.8 one million millions in 2001.The advantages of being market follower are “ market followings will be careful with section markets and they will vie in countries where their strengths are extremely valued. Besides, market follower normally will believe more originative than a leader market. “ ( Market Follower, 2003 ) The selling mix used by Merck is they promote their merchandise Mevacor as a market innovator to educate populace of the dangers of high cholesterin. ( Ahati, 2008 ) clear up that “ Merck was much more interested on the research and the ability of the merchandise to sell itself, selling would merely be an accelerating factor to assist sell the merchandise. ” Furthermore, the pricing scheme for Merck is they are take downing the monetary value of the drugs. This is because of betterments in fabrication efficiency and challenge of generic competition.

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The current position of the patent is about expired. This means that it wo n’t be able to protect the merchandise. This is a critical clip for Pfizer, the shaper of the powerful cholesterin drug since other makers will shortly be able to market generic options for patients. Due to this patent issue, there are imitation of the other drugs in the market while the rivals selling at the cheaper monetary value. Even though this can be considered as a scheme for rivals but Pfizer need to come out with new scheme way and besides related selling aims for Lipitor due to the termination of the patent.

Atorvastatin can be classified as a “ me excessively ” merchandise after the patent issue. However, there are many other ways for Lipitor to lift once more in the pharmaceutical market. The first thing is Lipitor should shift their trade name. Under the repositioning scheme, there are 4 things Lipitor can make. For illustration is shifting the rival, gustatory sensation alteration, new chance discovered and misidentify made in original place. Lipitor should heighten their trade names names because without strong trade names, it wo n’t be success in the market. Hence, work outing branding quandary should be the top precedence. For case, Lipitor should stress more in the acknowledgment and repute on the trade name itself such as utilizing Co-pay cards. These cards are given to patients and are used as a secondary insurance to take down the out of pocket cost for the consumer ( Pfizer ‘s Large Problem: Lipitor Patent Expiration, 2011 ) .

The other strategic manner for Lipitor is they must make better than rivals in term of marketing mix. More specific into pricing scheme which Lipitor should cut down Pfizer ‘s monetary value in order to bring forth more at the lower cost. The ground is with better methods and acquaintance with techniques consequences in accrued experience of forces. Furthermore, bring forth more at the lower cost can derive more experience curve which can even do more net income in order to accomplish cost leading. Furthermore, Pfizer should utilize aggressive scheme which may offer lessons for drug shapers confronting similar losingss of patent protection for other blockbuster drugs over the following few old ages, and may chart a new way for displacements between the large pharmaceutical companies and generic challengers.

Question 3

Based on the instance survey, Pfizer use different selling scheme in order to near physicians and besides consumers. However, the most of import portion is how effectual the scheme as to keep their consumers. Pfizer is utilizing the representative such as sales representative to inform the physician about their merchandise in order to carry the physician to acquire the acknowledgment and repute. This scheme is the most effectual because without acknowledgment, it is truly difficult to last in the market. This is because the trade name repute is one of the most valuable resources for every different merchandise. Consumers choose the most valuable trade name because of trueness and besides satisfaction towards the trade names. Hence, the ground Pfizer persuade the physician is because Pfizer wants to be good known in the pharmaceutical industry. For illustration in the instance survey is Pfizer trained and tested around 13, 000 sales representative in order to success in Pfizer ‘s gross revenues run in physician ‘s office. Due to this, the repute helped do the Pfizer ‘s sale reps the most productive in the industry.

Another manner Pfizer has done is they are seeking physician ‘s advice and sentiment through focal point group. Focus group is much more effectual due to the closer attack. In the instance survey, it was stated that even physician were ordering lipid-lowering medicine in records figure, they were still spooked for the thought of urging high doses. This consequence the FDA to O.K. get downing dosage for Lipitor in scope of 10 to 80 mgs a twenty-four hours and it was the major advantages for Lipitor.

Furthermore, Pfizer use another different run towards the consumer and the most effectual manner is direct consumer advertisement. Pfizer convey the message through advertisement and it is depends on the consumer on how they perceive the message. Based on the instance survey, the run aimed at conveying two messages which are first, consumer do n’t hold to be seeable unhealthy to hold unsafe cholesterin and second is consumer must cognize their flat figure of bad cholesterin in blood. If the reading below 100 agencies optimum while more than 160 considered hazardous. How effectual is this run is depends on how consumer takes the message in a serious term. This is because consumer that concern about their wellness is more likely to cognize their status better than the consumer which is does n’t.

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