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Pepcid Ac

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Submitted By kparekh1
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Q. How should Pepcid be positioned- treatment or prevention- and what are the implications?
Pepcid Ac would work best when positoned as a treatment drug.We can look at it from different levels:
Market demand/ Market research- - 2 tests with BASES methodology indicate that treatment has greater appeal over prevention with respect to the target groups- dual users as well as traditional antacid users. (Table D). While the focus groups and concept tests favored prevention and treatment (both together). However, JJ’s extensive experience with this BASES technique makes the findings more reliable.
JJIM”s core competency- Merck’s strength is is R&D’s expertise. The treatment positioning focuses on the product’s benefits.It outperforms the existing antacids in the OTC market.However the medication’ s ability to prevent is questionable. The treatment strategy will also rely on JJ’s core competency is its consumer marketing and sales. In the recent past (1990 t0 1993) JJ successfullyswitched from prescription to OTC medications , twice. For instance,JJ drove Immonium sales from 31.5 million in 1987 $ to 125 million in 5 years. (table b)
FDA as a collaborator- FDA’s rjected JJM’s to sell Pepcic AC on the grounds that the clinical trails failed to show its perforamnce as prevention medication.If JJM drops this claim it has a higher chance to be approved to be the first – to – market. Also, it is more advantageous for it to be the first-entrant to the OTC switch market.(discussed in next question)
Differentiation- Eventhough prevention was a way to differentiate from exisitinf competition and future competition. Perpcic AC can differentiate itself with the treatment claims. Currently the antacids are the only competition to the product.
Pepsic Ac has 2 features which differntiates it from its competition- convenience and long- lasting relief. BASES methodology

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