Warner-Lambert, an international pharmaceutical and consumer products company in Ireland, planned to launch a new product in 1990 called Niconil which was made for those people who would like to quit smoking. Niconil were different than the existing smoking cessation products in the market. Managers of the company believed that Niconil had many competitive advantages over its competitors and were very confident of the product. But there were some arguments about pricing strategy and marketing communication: Should Niconil be priced at a premium over cigarettes or on a par with cigarettes?What kind of advertising and promotion method they should use? Before launch the product in the market, Warner-Lambert managers need to decide the most effective pricing strategy and communication program in order to make Niconil successful.
Smoking Cessation Market
In 1989, 30% of the 2.5 million Irish adult citizens smoke cigarettes. Irish smokers would spend nearly £600 million on 300 million packs of cigarettes. Since 1950s, the harmful effects of smoking had been researched and documented and media was reporting the dangers of smoking. There were more and more anti-smoking campaigns and legislative restrictions against cigarettes. Within the 0.75 million smokers, there were at least about 75,000 smokers would like to quit smoking.
There were already some products targeted on those people in the smoking cessation market: Accudrop, Nicobrevin and Nicorette. Accudrop helped to trap tar from cigarette and Nicobrevin just eased smoking withdrawal symptoms. Nicorette was more special than the other two products. It was the only nicotine-replacement product and was in the form of chewing gum. It released nicotine into human’s body through mouth.
WLI had noticed the increasing quit-smoking trend and saw a good opportunity in the smoking cessation market, it also... [continues]
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