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Case #5: Major Pharmaceutical Player

Assignment: Product Portfolio Maximization Strategy

Type: War Game Scenario

Situation

• Client’s portfolio was under pressure from price brands.
• Competitor was gaining share based on a price positioning to MCOs and physicians.
• Looming in the future was new product launches in the category.

NECG Insight

• Our product’s rich heritage and brand equity with consumers and physicians were eroding.
• Our major competitor, even prior to launch, had great receptivity among physicians based on performance and among MCOs based on price.
• Positioning research revealed that our product’s preventative positioning was not communicated well. Conversely, competitor’s superior claims were appealing to consumers. However, the real competitive advantage was physician’s acceptance of competitor product’s superiority.
• NECG predicted that the ‘prevention’ segment would grow more rapidly than the treatment segment.

Recommended Strategy

• Reduce the price of our product and shift all DTC support to a growing brand.
• Strengthen the ‘preventative’ positioning for our product.
• Develop a comprehensive and compelling rationale to physicians on the merits of our products.
• Initiate new clinicals to provide our proactive and defensive positioning platforms.
• Prepare and set-up product to be the first OTC in a new category.

Results/Outcome

• Client’s portfolio remains strong. In 2000, Rx and OTC version of product had sales of $5,280MM and $520MM respectively.