Bayer AG: childrens

ASPIRIN

PRESENTED BY,
AKIL MULTANI 30
KALPESH PATEL 40
MIRAJ VACHHANI
57

Problem of case
What is the Impact of rays syndrome on
sales of aspirin?
What is a role of aspirin as prevention
against heart attack?
Given the respective scenario and
projection describe in the case evaluate
and choose the alternative that best
optimize for the Bayer children ASPIRIN
business.
What impact was made if children's aspirin
will reintroduce?

Bayers
introduction
Bayer
is a pharmaceutical

and
chemical company headquarter
in Leverkusen ,Germany with
about 20 different business units
that research, develop, and
manufacture products in the life
sciences, polymers and specialty
chemical areas with more than
120000
employee
worldwide.
BAYER was established in 1863

 1999
marked
the
100th
anniversary of ASPIRIN. Felix
Hoffman, a Bayer chemist ,
invented the drug in 1897 and it
came into market after two years
later.
Aspiration is a family of well
known brand and products,
which includes children ASPIRIN,
ASPIRIN protect, ASPIRIN direct ,

ASPIRIN milestone
1899

The launch of ASPIRIN

1900

Patented in US. as a first pain remedy in tablet form

1918

Loss of trademark right

1940

ASPIRIN become a leading cold medicine

1960

Argentinean success story begin first pain reliver

1971

Mode of action discovered

1985

Old substance, new indication-antiplatelet

1986

Reyes syndrome

1994

BAYER and ASPIRIN are reunited

1995

New indiction- cancer prevention

1997/99

100 th birthday of ASPIRIN

History of REYEs
syndrome
Was named after Dr. R. Douglas Reye.
Also discovered with fellow Australians Dr.
Graeme Morgan & Dr. Jim Baral.
Study was first published in 1963 in the
British Medical Journal.
The first occurrence may have occurred
prior in 1929.
In 1963 Dr. George Johnson with
colleagues published an investigation of
an outbreak in 16 children with influenza
B that developed neurological problems
after the virus. 4 of the children had
symptoms that were very similar to those

Effect of Reys syndrome on

sales of ASPIRIN
9000
8500
8000
Tablet in millions

7500
7000
6500
6000

year

Strengths and weakness of Bayers ASPIRIN

STRENGTHS

WEAKNESSES

Continuous
Research
and
Development
of
the
brand
supported by the head office
The 300mg and 100mg are
positioned differently and targets
different applications.

Findings are easily replicated by

competitors in the local scenario
(i.e. Unilab not investing in R&D)
The positioning of these doses
arent communicated effectively
therefore less awareness of its
applications.

It has a strong brand image

supported by 100 years of proven
efficacy and being the original
aspirin.
Price is cheaper than most of the
leading
competitive
brands
(P1.00 per tablet)

Newer generation is not aware of

the brand since communication is
less for Bayer Aspirin.
Compared to generic aspirins, it
is 20-25% higher.

QUE:- What is a role of aspirion as

prevention against heart attack?
Margrate heckler, US secretary of health
and human services announced to the
world that an aspirin a day after first
heart attack reduces the chances of
second heart attack. Three quality like
analgesic anti-inflammatory, antipyretic,
anti-platelet make it a headache, cold
and flu medication, but fourth quality as
a preventive medication

 Children aspirin is lowest dose aspirin

on the market. ASPIRINS market
share also show that its proportion is
high for the heart attack patient
because ASPIRIN works as a
preventive medication.

Sales forecast children

ASPIRIN
USE OF CHILDRENS ASPIRIN(%)
90
80
70
60
50
40
30
20
10
0

1994 1995 1996 1997 1998 1999 2000 2001 2002 2003

QUE:- Given the respective scenario

and projection describe in the case
evaluate and choose the alternative
that best optimise
. for the Bayer
business.
There are two options first stay in the
business and second is get out. If they
will choose first option of staying so
there is forcasting sales of childerens
aspirins is decreasing.
If they will choose second option of get
out there is two sub option retract and
reintroduce.

 If they will go by retract there is a net

margin loss as follow: ($ US in 000)

Net
margin
loss

1998

1999

2000

2001

2002

2003

cumulat
ive

7488

7054

6711

6456

6289

6211

40209

 If they will go with reintroduce there

is net margin loss as follow:($ US in
000)

Net
1998
margin
loss

1999

2000

2001

2002

2003 cumulati
ve

Reactiv
e
market

7162

6947

6833

6723

6697

6731

41093

Non
reative
market

3321

2990

2691

2422

2179

1961

15564

 Non reative market is the best

alternative of Bayer's business
because there is loss which is too
less. Under this scenario does the
oposite and react very little to their
product change. Thus pharma does
not lose any volume and customer
care does not gain any incremental
volume from the competition and
Bayer can keep 20% of children

QUE:- What impact was made if

children's aspirin will reintroduce?
Reintroduce children aspirin as a
prevention product and rename it
under the brand aspirin 100.
This would require repackaging,
relabeling and reindicating the brand.
While the new brand might accelerate
the cannibalization of pharmaS sales.
It could also attract user from
competitor brand.

Conclusion
Bayer is leading pharma company.
Because of rays syndrome ASPIRIN sales
has increased.
Sales of children ASPIRIN is decreasing
day by day. So company have to require
to take efficient steps for that product.
ASPIRIN is the best medicine for the
heart disease patient. Because it reduce
the chances of second heart attack.

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