Preview

Datril Case

Good Essays
Open Document
Open Document
884 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Datril Case
Case Write Up: Datril

Bristol-Myers have been very successful in analgesic market for many years with Aspirin type pain relievers marketed as Bufferin and Excedrin. Together with Bayer Aspirin by Sterling Drug Company, three aforementioned aspirin type pain relievers comprised of 90% of Analgesic market. One other type of pain relievers, Acetaminophen, have emerged into the market and its growth in the market seemed quite significant compared to that of aspirin type pain relievers. Although acetaminophen comprised of less than 10% Analgesic market, its Sales were growing at a rate of 50% where Aspirin was only growing at a rate of 9%.

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 less 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.

Tylenol, compared to Aspirin type pain relievers, had a very different approach in targeting its market. Since acetaminophen was first considered as a prescription-only drugs, Tylenol was advertised only to the trade and to the medical profession. As a result, doctors were recommending Tylenol to patients. Although the price of Tylenol was almost double the price of Aspirin type pain relievers, physician's recommendation and perception of prescription-only drug provided Tylenol a "premium" feel compared to Aspirin type drugs. By simply segmenting the market by profile of patients who visit doctors and who do not visit doctors with attributes such as less side effects, brand-name and doctor's recommendation,

You May Also Find These Documents Helpful

  • Good Essays

    In You Are a Contract Painkiller (1997, p. 111), author Maureen Littlejohn makes extensive use of personification to describe the functioning of Aspirin in our body, its various properties to fight pain, and its evolution over the years. Littlejohn describes how Aspirin claimed celebrity status as one of the world’s most popular, inexpensive painkillers by relieving headaches, sprains, blows, burns, swelling and fever. Furthermore, she added that Aspirin could also be used to reduce the risk of stroke and heart attack. The author supports the main idea by describing how the aspirin when taken with a modest stream of water or ginger ale, passed to the stomach through the esophagus and undergoes a series of chain reactions to disable the enzyme that converts the acid in cell membranes into prostaglandins (responsible for the pain). In a similar fashion it also helps bring fever down. Moreover, the author gives a brief history about the evolution of the modern day Aspirin from almost a thousand years ago when Hippocrates first discovered the property of willow leaves to help relieve pain. The author concludes the essay by highlighting the useful properties of Aspirin and the various ailments it provides relief from.…

    • 598 Words
    • 3 Pages
    Good Essays
  • Better Essays

    To be able to understand how organic soluble compounds could be isolated from non-organic components, a chromatographic separation process was used. The objective of the analgesic drug identification is to isolate the organic compounds/ active ingredients in an unknown drug. The identity of the drug was determined through melting point, percent recover, and Rf values. The comparable data for acetaminophen from the manufacturer is 500mg of active ingredient. After conducting the experiment-extraction, distillation, and evaporation- 451mg of active ingredient. This relates to a 68.1% recovery. The melting point was between 158 and 165 degrees Celsius, which is almost ten degrees lower than the published melting point of acetaminophen. After conducting a TLC plate, the Rf value was calculated to be .4268, the same as the standard Rf.…

    • 1180 Words
    • 4 Pages
    Better Essays
  • Good Essays

    Aspirin is used to treat pain for inflammation and work by blocking production of pain enhancing neurotransmitters, such as prostaglandins. Acetaminophen is also effective against pain. Aspirin acts locally at the site of the pain to stop it from producing pain signals. Aspirin can be good or bad by helping to prevent heart attacks.…

    • 479 Words
    • 2 Pages
    Good Essays
  • Good Essays

    Acetaminaphen was crushed then extracted for the active ingredient by mixing it with methanol. Then separated from the binders by centrifugation and a filtration technique using a Pasteur pipet packed with alumina. The remaining solvent was then evaporated to yield the solid analgesic(.2295g, 45.9% yield) which was collected by filtration and tested for the purity of the drug by the melting point determination. The melting point was (135-142 C) compared to the literature melting point values for acetaminophen (169-171 C) the lower melting point show that their were still impurities in the isolated ingredient.…

    • 783 Words
    • 4 Pages
    Good Essays
  • Good Essays

    Aspirin, acetylsalicylic acid, was first synthesized by a German chemist, Gerhardt, in 1853, but his reports went largely ignored. However, forty years later, in 1893, Felix Hofmann, also German, reinvestigated Gerhardt's work and proved it to be true. Acetylsalicylic acid was found to be medically effective for both reducing fevers and relieving pain (Synthesis).…

    • 1206 Words
    • 5 Pages
    Good Essays
  • Satisfactory Essays

    Langreth, R. (2014, May). Big pharma 's favorite prescription: higher prices. , (), . Retrieved from…

    • 575 Words
    • 3 Pages
    Satisfactory Essays
  • Powerful Essays

    Datril

    • 1340 Words
    • 6 Pages

    To take advantage of this opportunity the company should target current aspirin users since that market share is 90% and not target current Tylenol users since they are already converts and therefore, perceive no value in changing to Datril. The aspirin market is dominated by 3 main players and Bristol-Myers’ has two of the brands. Attracting current aspirin user will no doubt also benefit Tylenol, while at the same cannibalize Bristol-Myers own aspirin brands. A vertical brand extension using Datril as the…

    • 1340 Words
    • 6 Pages
    Powerful Essays
  • Powerful Essays

    American Pain Society, (2004). Principles of analgesic use in the treatment of acute pain and…

    • 1544 Words
    • 7 Pages
    Powerful Essays
  • Satisfactory Essays

    Datril Case

    • 324 Words
    • 2 Pages

    The first approach is Datril’s position as substitute of Tylenol at the same price. I think this strategy has less risk than the other one since, at least, this approach could make Datril stay in the market. People could become familiar with Datril by the leveraging effects from Bristol-Myers’ other analgesic brand such as Bufferin and Excedrin. People who are using those brands would trust and try to use Datril. However, this approach could not give a big impression to customers and the company could not get a huge market share. Therefore, Datril would not have a big market power.…

    • 324 Words
    • 2 Pages
    Satisfactory Essays
  • Better Essays

    Prescription Drug Reform

    • 1381 Words
    • 6 Pages

    According to USA Today in 2011 prescription drugs grossed over 320 billion dollars in sales. With the major contributors being the Elderly and helping save on some of the cost coming from more widespread use of generic prescription use. (“Prescription Drug Spending was flat in 2011,” 2012). The cost of prescription drugs can be scary when paying out of pocket. There are can be times that a particular drug is needed and if it is a newer drug, there isn’t a generic option for the first five years of the drugs inception.…

    • 1381 Words
    • 6 Pages
    Better Essays
  • Good Essays

    Tlc Lab

    • 515 Words
    • 3 Pages

    In this TLC lab, we explored the relative polarities of Acetylsalicylic Acid, Ibuprofen, Acetaminophen, and Caffeine based on their functional groups. The most overall polar analgesic is considered to be the analgesic that contained the most polar function groups. The amine and amide functional groups are the most polar. In this experiment, we found that both these functional groups are found in Caffeine. As a result, Caffeine was the most polar out of Acetylsalicylic Acid, Ibuprofen, Acetaminophen, and Caffeine. Aside from Caffeine, Acetaminophen has one amide functional group. This makes it the second most polar analgesic. In addition, Acetylsalicylic Acid has an ester group. Since ester group is not as polar as either amine or amide groups,…

    • 515 Words
    • 3 Pages
    Good Essays
  • Powerful Essays

    Unfortunately, they are usually only known by their brand name and not the active ingredient itself. Common brand names for ibuprofen are Motrin™, Advil™, Midol™ and Nuprin™. Acetaminophen is one of the most commonly used drugs in the United States for treating pain and fever.(JAMA, 2002) Acetaminophen is more commonly known only as Tylenol™, however, keep in mind that acetaminophen is very often contained in cold remedies as part of the manufacturer’s formula for the relief of multiple symptoms. Besides Tylenol™ having their own multi-symptom cold remedies, it is often found in others such as NyQuil™, DayQuil™, or Theraflu™. For reasons like this, it is very important that you read the label of active ingredients before taking any medication. For example, if you are taking acetaminophen for pain and take a cold medication containing acetaminophen as well, this can very likely cause an overdose which can be very dangerous with possible long-term…

    • 1540 Words
    • 7 Pages
    Powerful Essays
  • Satisfactory Essays

    Datril Case Template

    • 225 Words
    • 2 Pages

    The single most rewarding opportunity faced by the company is outline the opportunity. This situation is an opportunity because outline its potential performance impact. To take advantage of this opportunity the company should briefly outline the essence of the proposed action.…

    • 225 Words
    • 2 Pages
    Satisfactory Essays
  • Good Essays

    Datril Case

    • 961 Words
    • 4 Pages

    My recommendation to Marvin Koslow is to follow the first approach of pricing Datril at par with Tylenol ($2.85 retail price, $1.69 trade cost), leveraging Bristol-Myers’ brand name, and positioning Datril as an analgesic with similar relief effects to the those of the already successful, aspirin-based Bufferin and Excedin, but more gentle on the stomach, and without the side effects of aspirin. By doing so, Datril will primarily target aspirin users, specifically those from Bufferin’s and Excedin’s current consumer base, who suffer from upset stomach. I explain my rationale below. 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. The reason is that Tylenol was well established (8% market share) in the analgesic market which has traditionally been dominated by aspirin-based products. Therefore, directly competing against Tylenol at the same price is unlikely to result in quick market share and monetary gains within a month. Koslow should have allowed more time, say a medium run of 6 months to match duration of the marketing expenses to be committed, before thinking about switching to the other strategy. In addition, it can also be argued that the early success of Datril in the test market with the lower selling price may not be representative of its true performance over the medium to long run. Before defending my recommendation in detail, I would like to highlight the most prominent risk of introducing Datril as a cheaper alternative to Tylenol: not accounting for the competitor’s repositioning or defensive marketing strategies. Those could include the following: o One of the quickest responses that McNeil Labs could come up with is to reduce the price to trade, and subsequently the selling price, of Tylenol to match that of Datril. Doing…

    • 961 Words
    • 4 Pages
    Good Essays
  • Best Essays

    Panadol Marketing Report

    • 4066 Words
    • 14 Pages

    This Product Analysis Project is about the famous non-prescription analgesic manufacturer Panadol. Unlike its competitors, Panadol has a remarkable reputation and lower prices which are good for extending market share.…

    • 4066 Words
    • 14 Pages
    Best Essays