Flagyl - Metronidazole

Marketing Plan 2009

Muhammad Mujtaba Alam

 Executive Summary

Flagyl belongs to AMOEBICIDE AND ANAEROBICIDE class.

It is purely a prescription drug.

Flagyl is among the top 5 most prescribed brands.

Prescription rate is 19.1 million (5 % growth over last year)

Market share is 53.2% (49.7% in 2007)

Current sale according to IMS is 672 million (11% growth over last year)

Total market (amoebicide and anaerobicide) 1.2 billion

Market growth rate over last year 9%

No. of products in market 116

Launched during last 24 months 5
Launch during last 12 months 3
Products with zero value 25
PAKISTAN DEMOGRAPHICS:

POPULATION BREAK UP

65+
4% 0-14
37%

15-64
59%
Total Population: 176242949

Population Break Up

URBAN
36%
RURAL
64%
 Market Size Value in PKR Billion

1.2

Total Market

Amebicide and
Anaerobicide

99.79
Market Analysis (Mkt share)

IMS MAT Q3,2008

Market Analysis

IMS MAT Q3,2008

Market Analysis (Mkt share)

IMS MAT Q3,2008

 Flagyl Performance

900
800
700
600
500 828.7
400 599
664.5
300
200
100
0
2006 2007 2008

Value in million

Source: Internal sales data

Prescription Analysis:

4% 7% 2%
GPs
RMO
Surgeons
Gyn
32% 55%
Paed
 Prescription Analysis:
Prescriptions

25,000,000

20,000,000 19,170,000

15,000,000 Flagyl
Entamizole
Metrozine
Rx

Metodine
10,000,000 Metodine DF

7,313,000

5,000,000

1,440,000 1,311,000
909,000

-
Flagyl Entamizole Metrozine Metodine Metodine DF
Brands
No. of Doctors Prescribing:
No. of Doctors prescribing

60,000

54,100

50,000

40,000

Flagyl
Entamizole
29,900
Doctors

30,000 Metrozine
Metodine
Metodine DF

20,000

8,600 9,200
10,000
6,000

-
Flagyl Entamizole Metrozine Metodine Metodine DF
Brands
 Doctor's Experience of Usage

80 69
55
60 44
36 41 36 38 10-19
Percentage

33
40 21
11 20-29
20
0

Product (IMS MIP 1S 08)

 Potential Entrants
Porter’s • Other combinations
(high likelihood)
Five Forces • New Cheaper Generics
Analysis • THREAT: VERY HIGH
Buyers
• Physicians are
demanding more
relevant research
Suppliers Industry Competitors findings
• Many available • Long-established industry • Patients are
suppliers • Abbott (Entamizole) becoming more
• Simple starting • Searle (Metodine)
knowledgeable
materials • Sami (Klint)
• • Institution/Tender
•THREAT: LOW business demands
• THREAT: HIGH
huge discount.
•THREAT:
MODERATE
Substitutes
• Combination Agents
• Herbal medications
Customer Need • Decision not to use drugs
• Effective treatment of • Homeopaths
protozoal manifestations • Entox - P
• Reduce risk of further • Ispaghul
Overall Threat Level
complications • THREAT: MODERATE Moderate
 PEST ANALYSIS
Political
The disease affects a very large proportion of the
population, cutting across wide racial and geographic
boundaries.
Political condition is volatile
Lack of political will and commitment for prevention and
control of Different Diseases.
Poor or No implementation of Drug Laws
Social
Lack of awareness as far as personal health & hygiene is
concerned. Increase in total disease area and thus
pharmaceutical industry.
Personal hygiene is a major issue in Pakistan, due to
which various infections and diseases are transferred
through the oro-faecal route alone
Reimbursement is relevant to private sector only that too
in selected cases
Economical
People are susceptible to the influence of quacks,
hakeems and homeopathic physicians.
Lack of resources at patient level
Generally low standard of living makes taking appropriate
treatment more difficult.
Generics registering tremendous growth.
Prices of most pharmaceutical products have remained
stagnant over the last 10 years. No increase in prices, due
to government policy
Techno.
Internet/Web drug information
New drug classes
Internet and mail-order sales
 FLAGYL - SWOT

STRENGTHS Weaknesses
Not all formulations are available
Market Leader Often self medicated
Strong brand image
Lack of recent data on Flagyl
Strong rapport with KOLs
Replacement at chemist level
Effective in multiple indications
Recommended First line, first choice therapy

Opportunities
High growth rate of the market
Prescription potential in target indications
Large population-increasing urbanization
High treatment gap
Withdrawal of Metodine(MTDZ+DIHQ) –Searle
Threats
High SoV of competition
Increased penetration of low cost Generics in
institutions
Introduction of new molecules
Volatile PEST situation
Increasing COGS
 Competitor’s Analysis
Other
Product company Generic Price/Tab FF Size Products in
Group
FLAGYL SA METRONIDAZOLE 1.37 67 Nospa
Telfast

ENTAMIZOL ABT METRONIDAZOLE+ 4.28 55 Klaracid XL

E DILOXANIDE Froben
FUROATE
KLINT SAMI METRONIDAZOLE 1.33 50 Dicloran
TePh

METROZINE SEARL METRONIDAZOLE 1.37 55 Metodine

METODINE SEARL METRONIDAZOLE+ 3.86 - Metrozine

DF DILOXANIDE
FUROATE
ABOZOLE ABT METRONIDAZOLE 1.37 - Infusions
Market Definition
Total Amebicide & Anaerobicide market
 GPs, Physician, RMOs
Defined Market:
 Pediatrician & Gynae

 Surgeons & Dentists

Current Drug  Metronidazole

Classes  Metronidazole+Diloxanide Furoate
available:  Tinidazole
 The Value Pyramid (Disease severity)

CUSTOMERS DOSAGE FORM

Surgeon, Dentist Flagyl 200 mg.

Surgery Flagyl 200 mg.

Dental Flagyl INFUSION

Flagyl INFUSION

Gynae. Physician, Gastro. Trichomoniasis, Flagyl 400 mg.

Flagyl 400 mg.

Liver abscess Flagyl INFUSION

Flagyl INFUSION

Flagyl 400 mg.

GPs, RMOs, Paed. Amebiasis, Giardiasis Flagyl 400 mg.
Suspension
Suspension
FLAGYL
The Segment Prioritisation Matrix

High
GPs
LHW
RMOs
Segment Attractiveness

Paramedics

Paeds

Surgeon

Gynae

dental
Low
Low Brand Strength High
 Target Market definition

Target Market

Patient Segment Competing Categories

Amebiasis Amebicide/Anaerobicide
Giardiasis Metronidazole
Vaginitis Diloxanide Furoate
Liver Abscess Secnidazole
Surgery Case Tinidazole
 Flagyl – Product Review:
 Amebiasis and giardiasis are one of the most commonly observed causes of intestinal disease
in Pakistan.

 The large burden of infectious diseases in Pakistan is known to be closely related to the lack of
sanitation facilities and safe sources of potable water.

 Water –borne diseases constitute nearly 12.5 percent of the diseases burden in Pakistan.
(Pakistan Economic Survey 2007-08, Health and Nutrition)

 Flagyl (Metronidazole) belonging to nitromidazole group was launched in 1979.

 Flagyl is unique in class because Flagyl not only is a strong amebicide but also has got
remarkable efficacy against anaerobic infections.

 In amebiasis and giardiasis, flagyl is effective against both the cyst and trophozoite.

 Flagyl is a mixed amebicide because it is effective in the intestinal lumen as well as in the
tissues.

 Flagyl is also widely used in infusion form for the treatment of anaerobic infection. It has
potent anaerobic effect against most common anaerobe pathogen b.fragilis.
Brand Vision

To make Flagyl as 1st PKR value 1 Billion brand of Sanofi Aventis Pakistan till 2012

To establish Flagyl as ALONE IS EFFECTIVE in target indications.

 Brand Objectives (3 years out)

QUANTITATIVE
• To Maintain 1st Position in Amebicide/Anaerobicide Market
• To continue give double digit growth
• To increase share upto 60 % in next three years

QUALITATIVE
• To build and enhance brand image of Flagyl
• To establish Flagyl as ALONE IS EFFECTIVE therapy in target indications among target
segments
• To further strengthen the roots in amebicide & anaerobicide market
 Positioning
For:
GPs, Physician, RMOs, Pediatrician, Gynecologists, Surgeons & Dentists that treat Amebiasis,
Giardiasis, Vaginitis, Liver Abscess and performs Surgical Procedures
FLAGYL is:
The drug of choice & an effective AMEBICIDE & ANAEROBICIDE

That will:
Empower patients and caregivers to take control of their lives and bring them back to their daily
routine.
Because FLAGYL:
ALONE IS EFFECTIVE and Provides effective eradication of protozoal manifestations &
anaerobes involvement.
 high
BRAND ESSENCE

Emotional
benefits

Alone is Effective

Low Rational high

benefits
Position at Product Life cycle:

Share: 53%
Growth: 11%

Flagyl
Price Plan of Flagyl: 400 mg

Ex Pricing 0.98
At which distributor gets the product
Profit Margin (15%) 0.18

Trade Price 1.16

At which retailer gets the product
Profit Margin (15%) 0.2

Selling Price 1.37

At which Patient gets the product
WATER IS LIFE
 Period: July-September 2008

 Target: Doctors
Chemists
Sales Man
Paramedics

 Coverage: Countrywide
WATER IS LIFE-support
 PGI (Promotional Gift Items)
 Aqua Calculator
 Aqua Pen
 Aqua Table clock
 Promotional Items:
 Posters
 Wall mounts
 Patient Awareness:
 Animated poster for public awareness about clean hygienic
living and how to avoid water borne diseases.
 Water is Life – Targeting the Paramedics

 Paramedic staff plays an important part in I.V. business.

 Selected paramedic staff will be given product reminders which will
specifically be for patient benefit
 bandages
 Ceramic Mugs
 surgical gloves
 Face mask
 Lab coats.
 Objective:
 To counter the prescription shifts and replacements to cheap generics
 Maintain the top of mind status among the target segment.
Patient Awareness Poster / Wall
mount providing information on 5
common causes of Amoebiasis
Pharma Associates: (Region Wise)
Pharma Associate

PESHAWER
7
KARACHI
16
ISLAMABAD
8

FAISALABAD
HYDERABAD
8
8

MULTAN
8 LAHORE
12
Doctor Coverage:

Visits Per
Category No. of Drs. %
Month

A Class Dr 4 1300 12

B Class Dr 3 2200 21

C Class Dr 2 7000 67

Total Drs 10500

Avg Drs Per PA 175

 FORECASTING

Year 2008 2009 2010 2011 2012

Market (PKR: Bn) 1.2 1.3 1.4 1.6 1.7
Flagyl Value(PKR: Mn) 672 745.9 828.0 919.0 1020.1
Flagyl Share(%) 56 57.0 58.1 59.1 60.2
 Forecast - Value & Share
PKR 1 billion
1500 1020
827 919
745
Value inPKR

1000 672
Million

Flagyl Value in
500 56.0 57.0 58.1 59.1 60.2 million
0
Share (%)

MAT
MAT

MAT
2008

2010

2012
Year
 Promotional Expense: 2008
Quantity
Pharma Total Qty Unit
Promotional Item Per Total Value
Assoc. Req. Value
Year
DETAIL AID 360 67 24120 5 120600
Infusion Samples 600 67 40200 40 1608000
Suspension Samples 1200 67 80400 19.1 1535640
Tablet 400mg Samples 1800 67 120600 2.2 265320
Give Aways (Selective) 400 67 26800 150 4020000
PEN 750 67 50250 15 753750
PAD 400 67 26800 20 536000
Round Table Discussion 40   40 8000 320000
Speaker Programmes 33   33 35000 1155000
Inf. Awareness Prog. 130   130 6000 780000
Sci. Product Presentation 225   225 7000 1575000
Misc. (Eid,14 Aug…)         400000

Total         13,069,310
 DETAIL
MISC AID
SPP 3%1%
12% SAMPLES
IAP 26%
6%
SPEAKER
9%
RTD
2%
PEN PADS
10% PGI
31%
Sales v/s Expense - 2009
 

Forecast Sales 745,000,000

Expense 13,069,310
% 1.7
DISTRIBUTION PLAN
 Focus on improvement of Inventory Turn Over through
enhanced projections & proactive analysis of changes
in the market environment, through the Sales Force.

 Attempt to further improve morale of sales force to

further improve efficiency of sales activities

 Study and identify gaps in territories that might be

resulting in loss of sales, and take measures to fill
them.

 Constant feedback and proper analysis.

Marketing Strategy -2009
 To increase market penetration through
switch from generics and combination
agents
 To gain maximum brand loyalty through
KOL Advocacy
 Focus on GPs and RMOs
 Increase usage of Infusion
 Untapped new segments
 ANSOFF GRID

Flagyl

FLAGYL is an EXISTING PRODUCT IN AN EXISTING MARKET of Amebicide &

Anaerobicide hence it should follow the market penetration strategy and increase its
market share by increasing usage, availability and awareness.
Plan of Action Detailing: throughout year

Water is life

IAP SPP
LSP
RTD RTD
PGIs PGIs LSP
JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC

PGIs SPP IAP PGIs SPP LSP RTD

RTD
 Marketing Mix
Product A gold standard, time tested product: Rational data with strong
branding, brand recognition through advertising, and KOL
Advocacy
Price Very Affordable:
PKR: 1.37 per tablet

Promotion Sales & Marketing Activities; advertising; visual aids; Events &
Programmes

Place OPD sitting - Clinics

Infusion Awareness Programmes - Institutions
Awareness programmes in Rural Areas
 Focus Group Meetings
Segment Objective
Segment
•GPs
•GPs To focus upon potential FLAGYL Prescribers to share
•Pediatricians their experience and data supporting the usage of
•Pediatricians
•RMO
•RMO (PHY,SURG)
(PHY,SURG) FLAGYL in order to enhance their confidence on the
product & gaining maximum advocacy

PROGRAM DETAILS
SCOPE: Potential GPs, Pediatricians & RMOs TO BE EXPOSED in Focus Group Meeting
TIMING: Jan - Dec 2009
DESCRIPTION
Focusing 10-12 key Prescribers at a time

Sharing of experience and data

Meetings to be held in URBAN AREAS

 LSPs, RTDs and SPPs
Segment
Segment Objective
•• KOL
KOL To expose targeted doctors through scientific means
•GPs,
•GPs, RMO
RMO to Flagyl publications and experiences and briefing
•Physician,
•Physician, Pediatrician
Pediatrician for marketing activities during 2007

PROGRAM DETAILS
SCOPE: 225 SPPs; 40 RTDs; 33 LSPs

TIMING: Jan – Dec - 2009

DESCRIPTION
Scientific sessions gathering doctors to highlight FLAGYL as alone is effective

COST/Activity
SPP : PKR 7000

RTD : PKR 8000

LSP : PKR
35000
Infusion Awareness Programmes:

Objective To expand prescriber base.

To enhance experience of Flagyl IV among KOLs.

To get maximum no.of patients on Flagyl IV.

Details Surgeons and RMOs from a particular institution will be invited.

Presentation delivered by Company’s Presentator.

Segments focused Surgeons, Gynecologists, RMOs and Paramedic Staffs

for activity

Duration of activity  10 per month in different cities of South and North Reigon.

Responsibility Supervision & Execution = DM and Representative

Follow up = SM, DM and TM
ROI = DM & TM

Approx.cost of Total Cost per activity = PKR 6000.

Samples involved
 Opportunities and Strategic Levers

Brand/
Market Increase penetration among patients Maximize value of
opportunity treated with COMBINITON agents each Prescription
(Where to
compete)

Strategic Convince physicians that Flagyl alone is effective and complete

Levers amebicide with potent anaerobicidal action.
(How to
compete)
Increase penetration in Combination Amebicide market

Achieve Dominant SOV (Share of Voice):Improve Increase average

sales force Planning and Coverage daily dose

Increase penetration among GPs and RMOs

P&L Statement VALU
    E %
SALES   745  
COST OF GOODS    
  RAW MATERIAL 115  
  PACKING MATERIAL 29  
  LABOUR 151  
  OVER HEADS 96  
  DEPRECIATION(PLANT) 35  
TOTAL COGS   426 57.2
GROSS PROFIT 319 42.8
       
1.7 % of SALES
OPERATING EXPENSES    
  SALES FORCE EXPENSE 69  
  MARKETING STAFF 47  
  PROMOTIONAL ACTIVITIES 13  
  MISC 7  
       
TOTAL OPERATING EXPENSE 136 18.3
       
NET INCOME 183 24.6
Thank You