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Case Study Pepsid Ac

In: Business and Management

Submitted By nicksdna
Words 373
Pages 2
Pepcid AC Racing to the OTC Market

Done by:Nikhil Jain H2014020 PGDM-1, HCM Goa institute of Management

Case Background
 

Advisers to FDA – Recommended against JJM to sell Pepcid AC (OTC-Version).
Companies aiming for OTC Market
 SmithKline

Beecham (TAGAMET) - Treatment only claim

 Glaxo
 Eli

Wellcome (ZANTAC) - Treatment claim & Prevention claim

Lilly (AXID) (PEPCID AC) - Treatment claim & Prevention claim

 JJM



Early mover will have Benefits.

OTC ????????????????????????????????????????????
Patent Expiry

Why OTC
Significant Growth Generic competition

Concepts Tested
1. Lasts 8 Hrs/4 times Longer than antacids. 2. Prevents & Treat heartburns and stomach upset.

3. Prescription heritage.
4. One tablet dosage

BASES II Results
  

Efficacy – After-use repeat purchase intent.
Treatment as preferred choice. Purchase intention (two-top boxes)
 

82% - Heavy users. 76% - All antacids users. – 11% of population. – 34% of predicted volume.



Dual user – Highest trial rate (29%).



Pepsid’s First year sales – 2/3rd from existing antacid.
– 1/3rd from prescription market.



Cannibalization – From Mylanta - 11% of Pepcid AC’s sales.
– From Pepsid - 8% of Pepcid AC’s sales.



Priced at $2.95 for 6 tablets – would surpass the internal dollar volume hurdle.

Focus Groups and Physician & Pharmacists

    

Acid Controller appeared a viable product description.
Product endorsement from Gastroenterologist – most credible. Tagamet – brand image tied to ulcers. Recruiting Pharmacist – essential to Pepsid’s success in USA. Pharmacist’s Response – Positive to Pepsid AC.

30% of physician – would recommend Pepsid AC as a substitute

The War Room


First Option –
   



Return to Advisory Committee After conducting new studies. Might take 6-9 months.

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