For Bristol-Myers, additional revenue stream these additional retail option provided an additional revenue stream. Attracting current aspirin user will no doubt also benefit Tylenol, while at the same cannibalize Bristol-Myers own aspirin brands.
By comparing Tylenol and Datril by categories of features, points of parity are: An analgesic perceived superior to the aspirin-based alternatives due to fewer side effects; with a functional value similar to its only competitor Tylenol; in a market experiencing exponential growth.
With the price being at par with Tylenol, Datril has no points of differentiation to offer.
In doing so, it allows Datril to establish itself on a differentiation strategy, alongside a similarity based position. Reducing costs could also increase revenue.
My suggested approach should be combination of two strategies.
Market penetration and share take time and is unknown. More essays like this: The second approach involves pricing Datril a dollar less than Tylenol. The key aspects of the marketing mix employing the 4ps: The case states two possible strategies for Bristol-Myers: If a doctor recommends a safer drug, this particular segment will not hesitate to spend an extra dollar.
Conclusion The above analysis reflects our strong belief that the proposed action to position Datril in the aspirin market would successfully increase market share while not prompting a price war with Tylenol.
This would make Datril more likely to be adopted. Rather than the difference of a dollar, difference may be reduced in half. Ultimately, to establish a price point that allows Datril to compete with Tylenol given like functionality.
Bristol-Myers could also leverage other brand association on the packaging. Bristol-Myers clearly saw an opportunity in Acetaminophen market and hence they are planning to launch Datril, acetaminophen type pain reliever.
Additionally, acetaminophen provided a sense of feeling better than aspirin. Since Datril will be entering into a market that is already dominated by Tylenol, its strategy must differ, targeting different segments of the market.
McNeil Labs promoted Tylenol, limited to physicians and the trade. Pricing Datril at par with Tylenol and advertising it as a new substitute with same features may have been a fraught tactic in a short-run test environment.
Often a referenced price is a known and available price, like that of a competitor. Acetaminophen was first-introduced in mids and it was not until early s when it became available as over the counter drug. Studies had shown that the side-effects from acetaminophen were less than aspirin.
Additionally, a price war could have ensued with Tylenol due to cost differences especially in advertising.Free Essay: In other words, the company had to formulate an effective marketing and promotional strategy for its new drug, Datril.
The company was not merely.
According to the case, when Datril was introduced to test markets per the strategy I recommended, it failed to achieve the projected sales figures within the first month. Although I have no access to those sales projections, I could argue that the may have been overoptimistic.
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Only at killarney10mile.com" Datril Case This case deals with the market penetration and positioning of Bristol-Myers’s new analgesic called Datril in This new drug. The target customer of Datril should not be overlapped with those of Tylenol. Tylenol was a dominant and well established brand in the acetaminophen market, and was used for a long time by loyal customers who get recommendations from medical professions.
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