Marketing and Price

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FACULTY OF BUSINESS AND ACOUNTANCY
BACHELOR OF BUSINESS ADMINISTRATION
CBEB 1106 PRINCIPLES OF MARKETING

Assignment 2012/2013

Company Case: Unilab’s Vidastat

Prepare by:
Choong Yee PingCEB120013
Kim Ga YoungNEX120217
Lim Ke ShinCEB120032
Nurfarah Ain Bt. Abu HassanSEF090030

Contents
Number| Tittle| Pages Number|
1.1| Introduction| |
| 1.1.1 The Price Buster| 3|
| 1.1.2 Company Background| 4|
| 1.1.3 Competitor’s Analysis| 5-6|
| 1.1.4 Unilab Launches a Counteroffensive| 7-9|
1.2| Question for Discussion| |
| 1.2.1 Question 1| 10|
| 1.2.2 Question 2| 11-12|
| 1.2.3 Question 3| 13|
| 1.2.4 Question 4| 14-15|
1.3| Conclusion| 16|
1.4| Reference | 17|

1.1 Introduction
Unilab’s Vidastat:
1.1.1 The Price Buster
Pricing pays an important role in the success or failure of a new product. Price penetration strategy or offering a lower price against competitors, was used by United Laboratories, Inc, or Unilabas it is better known, in launching Vidastat, a brand of simvastation (an anti-cholesterol drug) against the market leader Zocor produced by merck and Co.Unilab is a local manufacturer and distributor of pharmaceutical product in the Philippines while merck and Co. is a U.S company operating worldwide. Until 2004, Merck held a patent on simvastation however once this expired, Unilab were able to launch Vidastat. Unilab is engaged in the manufacturing, marketing, and distribution of pharmaceutical products in the Philippines and across southeast Asia. It is the market leader in over-the-counter (OTC) healthcare products including multivitamins and minerals (Enervon and Ceelin), cold and flu remedies (Decogen and Neozep), and pain and fever relief (Biogenic and Medicol), Unilab also dominates the prescription drug market and manufactures and sells drugs to combat infections, cardiovascular disease, asthma and tuberculosis , to name a few. The company also operates on an international level, with a strong regional presence throughout southeast Asia , particularly in Indonesia, Thailand, Malaysia , Singapore, Hong Kong , Vietnam, Myanmar, and Cambodia.

1.1.2 COMPANY BACKGROUND
Established in 1945 by Jose Y. Campos, Unilab started as a small drug store in Binondo, Manila, Philippines, selling drug at affordable prices to the war-torn population. The company proved to be a huge success and in a few short years had established a modest pharmaceutical company catering to the basic health needs of the population. Unilab started its marketing operations by promoting their ethical and prescription drugs to doctors. Sales representatives would meet with doctors to explain or promote the merits of products, inviting doctors to product symposiums whereby industry drug specialists would explain the drug in detail. With business booming, Unilab was able to expand its marketing operations by hiring more sales representatives. Product divisions were established so that the sales team could focus on certain areas: cardiology, paediatrics, and general practice. Why was Unilab so successful so quickly? The success of Unilab can be attributed to its organizational culture of Bayanihan, a Filipino term which refers to people working together to achieve a particular goal. It is a key principle for Unilab and the foundation of a true and genuine relationship between management and employees. In recognition of the exemplary performance of Unilab, in January 2009 the company received the Philippine Quality Award (PQA) for Performance Excellence. This is the highest award that can be given to a company that has demonstrated excellence in quality and performance.

1.1.3 COMPETITOR’S ANALYSIS
When Unilab decided to launch the simvastation, Vidastat, its main competition was Zocor. The original simvastatin, Zocor was first introduced in the Philippines in the late 1980s by Merck & Co, a U.S. global company. Zocor comes in 10mg and 20mg...
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