Coca Cola Advertising Hits
1. Unilab lauch Vidastat by using Price Penetration Strategy
2. How did Zocor neutralize the entry strategy of Vidastat in the anti-cholesterol market? If you were the product manager for Zocor, what might your strategy have been if you had been faced with the same situation? -Unilab lauch Vidastat by using Price Penetration Strategy
-Zocor neutralize the entry strategy by lowering the price as much as 50%
-Price adjustment:
Discount and allowance
Location-based pricing
3. Why do you think Zocor lowered its price by matching the price of Vidastat? Explain your answer. -To compete with Vidastat and grab back the market share
-To gain back doctors’ support
4. As a marketing student, how would you respond to this pricing issue with the worsening economic in Southeast Asia in mind? Do you think Merck implemented the right strategy by lowering its price, thereby exposing itself to criticism from its customers? -Maintain the price and increase the quality of Zocor
-Focus on research and development (R&D) of side effects Conclusion 1) One of the elements of the marketing mix
2) Introductory price
3) Quality creates customer value
* This case looks at the launch of an anti-cholesterol drug in the Philippines by Unilab. Until 2004, a competitor held the patent for the drug, but Unilab were able to develop their own generic version. In order to gain market share, Unilab not only had to develop their own product, but to compete against the established market leader. They chose to do this on price, using price penetration. Added to this, they focused on promotions to doctors. The doctors, seeing that the generic product was equal to the established brand in terms of effectiveness and the fact it was cheaper, began to switch to Unilab. As the demand increased, Unilab was able to take advantage of economies of scale (reducing manufacturing and distribution costs). In this way, Unilab were able to overcome Zocor’s first mover
2. How did Zocor neutralize the entry strategy of Vidastat in the anti-cholesterol market? If you were the product manager for Zocor, what might your strategy have been if you had been faced with the same situation? -Unilab lauch Vidastat by using Price Penetration Strategy
-Zocor neutralize the entry strategy by lowering the price as much as 50%
-Price adjustment:
Discount and allowance
Location-based pricing
3. Why do you think Zocor lowered its price by matching the price of Vidastat? Explain your answer. -To compete with Vidastat and grab back the market share
-To gain back doctors’ support
4. As a marketing student, how would you respond to this pricing issue with the worsening economic in Southeast Asia in mind? Do you think Merck implemented the right strategy by lowering its price, thereby exposing itself to criticism from its customers? -Maintain the price and increase the quality of Zocor
-Focus on research and development (R&D) of side effects Conclusion 1) One of the elements of the marketing mix
2) Introductory price
3) Quality creates customer value
* This case looks at the launch of an anti-cholesterol drug in the Philippines by Unilab. Until 2004, a competitor held the patent for the drug, but Unilab were able to develop their own generic version. In order to gain market share, Unilab not only had to develop their own product, but to compete against the established market leader. They chose to do this on price, using price penetration. Added to this, they focused on promotions to doctors. The doctors, seeing that the generic product was equal to the established brand in terms of effectiveness and the fact it was cheaper, began to switch to Unilab. As the demand increased, Unilab was able to take advantage of economies of scale (reducing manufacturing and distribution costs). In this way, Unilab were able to overcome Zocor’s first mover