1) What does project Scorpio want to achieve?
Project Scorpio was the code name for a new solid-form nonprescription product for relief of cold. The company wanted to develop a new solid cold tablet with an analgesic, decongestant and an antihistamine action. Project Scorpio wasn’t a completely new idea, in fact a couple of years before Vicks Health Care Division developed Project Slex which was basically the same as Project Scorpio. Project Slex turned out to be a failure, but the company really wanted to widen the variety of offered products introducing a solid- form cold remedy. For these reasons the group took from the previous project only the physical composition of the drug and this time they tried to be successful choosing the right name, packaging, advertising and execution strategies. Despite the high competition on nonprescription/over the counter market, Vicks Health Care Division wanted to launch this product with a minimum objective of $ 10 million for the first year after the introduction. In conclusion they wanted to introduce this new cold product, exploiting the existing market research and using the past experience with Project Slex.
2) What do you think about the market potential for this new product? I think that the market potential for this new product it’s high, but before arriving at this conclusion we have to consider some different aspects (some potentially good and some potentially bad). I’m going to start with some good aspects for the profitability of the market for this new product. Analyzing the customers’ side we can notice that they have no bargaining power and, even if the demand for cold drugs is unpredictable, follow a seasonal pattern and can change from year to year, the Scorpio product can be used not only for cold, but also for sinus, allergy symptoms and analgesics. All this categories of remedies experienced important growth from 1974 to 1979 (see table A). Moreover the average retail margins for each category...
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