If Datril decides to employ the second option, I do think they may be able to gain some market share from Tylenol’s existing customers, however if the drugs are identical, the only competitive advantage is price. Unfortunately, price is one the easiest advantages for a company to counter attack. Because Tylenol is the market leader of acetaminophen, they can employ the defense strategy and be successful in their counter attack Bristol-Myers. If Tylenol lowers their prices to match Datril’s, there will be no advantage in the market. The other risk with this option is the longevity of any marketing materials created.
There are many factors that affect this. Pharmaceutical knowledge, experiences, and influence by advertisements are just a few. Perhaps a group of consumers prefer Ibuprofen, regardless of its nearly identical results. This would cause a shift that will decrease the demand of of Tylenol. Expected future prices can also affect the demand curve.
With this formula, SFPG aims to target customers by stating the superiority of the product due to its high degree of protection from odour and wetness. The concept statement also states that it is a unisex product with an aim to target wider customer base, not just limiting it to one sex. This way they reduce on production costs as well. The new product will be available in two sizes costing $3.50 and $2.20 per unit basis. Good to mention the pricing as it is easier to categorize it in a particular section in retail outlet.
1.0 Introduction: Xcellerate is a new concept of energy drink that will take the energy drink market by storm. Using lots of Vitamin B6 and B12 the drink is able to provide the same energy boost as a normal caffeine and sugar based drink, but is a much healthier alternative. The drink will be available in one flavour upon its initial launch in order to reduce the chance of brand dilution as well as easing manufacturing and distribution burdens. The brand will be priced in the medium to higher end price bracket in order to compete with premium brands and to avoid being associated with the low quality alternatives that compete solely on price. The main competitors in this segment for Xcellerate will be Red Bull, Monster Energy and Livita, however Red Bull’s dominance is easily identifiable with 5.6 million litres sold in 2011 (Marmet Sizes - Historic off trade volume - mn litres Malaysia, 2011).
Bristol-Myers clearly saw an opportunity in Acetaminophen market and hence they are planning to launch Datril, acetaminophen type pain reliever. Acetaminophen pain reliever has the advantage over aspirin type with fewer side effects such as upset stomach. Acetaminophen was first-introduced in mid-1950s and it was not until early 1960s when it became available as over the counter drug. It was first launched as an over the counter drug by McNeil Labs, a subsidiary of Johnson & Johnson, namely Tylenol. Tylenol has captured 8% of analgesic market, which implies that Tylenol has been dominating the Acetaminophen market.
Both strategies failed, therefore it is necessary to analyze what were their mistakes. • Core Competencies: Trexel has the know-how to development of different product better than its competitors (lower production cost), so it is necessary to consider the cost savings of the different alternatives. • Competitive Advantage: Because of Trexel has the know-how to produce high-quality products at low production cost, they are better positioned that its competitors. Also Trexel have protected their intellectual property through patents, which allow maintaining a sustainable competitive advantage in the time. For these reasons, it is necessary to analyze the competitive advantage of the different options presented.
Reducing price will increase sales volume at least for short time but it not good in building the brand and increasing the brand market share as one the analyst has clearly stated that a price sensitive consumer will easily shift to another brand which offers a lower price than La Shampoo, thus rendering the entire exercise fertile. Another positive out come from Eric’s solution is that the brand can buy time for Caroline to think of a better decision. Beth’s solution is to create new advertisement campaign. This solution seemed better to improve sales but there are still no specific changes that suggested to repositioning La Shampoo on the consumers’ minds. Taking into consideration
TORK CORPORATION COMPETITIVE COST ANALYSIS 1. What are the primary cost drivers for room air conditioning? How do the drivers differ between LG and Tork? The primary cost drivers are Design, Geography, Facility and Execution. The differences over cost driver between LG and TORK are mainly come from the followings, please see below: Design: LG uses the plastic parts which the weight is lesser than Tork steel’s part and also the cost are cheaper.
Unilever has one detergent powder that is very good quality in the Omo, but it are priced higher than lower income individuals would pay. Unilever has cheaper brands, in the Minerva and Campeiro. They are both affordable for the lower income market, but do not have as strong cleaning power. The competitors of Unilever’s detergent powders are mainly Ace and P&G who pose little threat in the lower income market because there quality and price point is matched similar to the Minerva brand.
They also improved the label design of the bottle. They were placed in Alternative Beverage Category where at the time Coke and Pepsi did not have a share in the market. Snapple was in the middle where it was neither like Coke with unhealthy drinks nor the healthiest drinks in the market. As for the Price, it applied premium pricing for its successful products which enabled it to be profitable and cover losses from failures. Its Promotion method was one of the key elements that made the company achieve success.