Datril Case Study

303 Words2 Pages
Datril is a new analgesic made by Bristol-Myer’s that is classified as containing acetaminophen. This case deals with Datril’s market penetration and positioning as compared to their competitor, Tylenol. I believe that Datril should be positioned as the newest addition to the Bristol-Myer’s family and priced at the same point as Tylenol. This approach will allow all the advertising to focus on the drug’s unique selling points as an acetaminophen as compared to an aspirin, while having the back bone of the Bristol-Myer’s name. This tactic will draw in those customers who already trust and use the Bristol-Myer’s brand. Although the market penetration may not be as quick as pricing competing with Tylenol, the trust will be built up over time. The case study also states that acetaminophen product sales were growing at a rate of 50% as compared to 9% with aspirin. This is a clear advantage for Bristol-Myeres to introduce Datril as the “easy on the stomach” option for an analgesic. 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. If the selling point highlighted is cost, all advertisements would have to change if Tylenol price matches and because of legality, ads would have to be pulled off air for false
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