Rogaine Case

Topics: Marketing, Baldness, Androgenic alopecia Pages: 4 (1380 words) Published: March 20, 2012
Problem Statement
As Pharmacia & Upjohn ready their Rogaine product to be distributed over the counter the company faces many new challenges not previously considered. Pharmacia has estimated that once in the over the counter market Rogaine would reach $250 million in sales within their first year and $1 billion over a period of five years. The numbers mentioned above where forecasted under the assumption that the FDA would approve a request for three year marketing exclusivity, this request was however denied. Pharmacia & Upjohn must now consider the possibility of loosing 60% of their volume to competition. The brand will have to reevaluate their potential first year sales and decide how they will modify their marketing plan to differentiate Rogaine from comparable products. External Analysis

Customer Analysis. Pharmacia & Upjohn target men and women between the ages of 25 to 49 for their Rogaine product. Since Rogaine’s introduction as a prescription drug the product has grossed over $700 million in sales. At the time of the case research estimated that there were about 20 million women and 40 million men in the United States with thinning hair or baldness. Out of this group 38.6 percent of women say they would seek treatment for hair loss and 30.4 percent of men say they would seek treatment. Combined men and women are estimated to spend an estimated $300 million a year on products for the treatment of balding. As of now Pharmacia & Upjohn estimate potential retail sales of $250 million a year. Management will now have to take into consideration that they could lose up to 60 percent of their sales after their patent expires. Growth Prospect. By 1995 cumulative sales for the brand had reached $700 million in the US and exceeded $1 billion worldwide. Sales from their first year offering nonprescription Rogaine were expected to yield $250 million in retail sales in year one and $1billion over a period of five years. The company obviously...
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