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MKTG 519
February 23, 2017
Who: MedImmune
What: FluMist acquired for $1.6 Billion. Financial evaluation and market strategy will
be planned optimally.
Where: Global
When: Just acquired FluMist. Must launch within next year to reap rewards.
How: By logically and analytically determining MedImmunes current and future potential
profitability
Alternatives/Options
One alternative is to market to the general public through the companys website and change into
dispensable form. Another alternative is to market to a specific audience such as retailers,
insurance companies, or online marketplaces. Another alternative is to market the globe by
continuing to create partnerships with international corporations.
Decision Criteria
This decision is based on the financial history of MedImmune. A strong net profit percentage along
with high sales is vital to consider for a $1.6 billion dollar acquisition. Strong customer demand and
the ability to adjust to change in the market are key indicators of a successful company.
Decision
Although the case seems to target insurance companies and doctors, I believe targeting retail and
online commerce will prove more successful. Online stores offer more convenience, require less
maintenance, and expand your market potential globally.
Missing Information
FDA decision.
The ability to sell without prescription or not.
The effectiveness of the nasal spray.
Assumptions:
The average annual growth rate is 28%. For 2013, I forecasted a conservative growth rate in
revenue of 19%. I also assumed a decrease in R&D expenditure and an increase in cost of goods
sold as a result of the FluMist acquisition. Lastly, gross profit was forecasted to increase.
Appendix
Appendix A
Appendix B
SWOT Analysis
Internal
Strengths Weaknesses
1. Partnerships 1. Uncertain demand for FluMist
2. FluMist acquisition 2. Undetermined FDA decision
3. Positve Gross Profit and Net Income 3. Effectiveness of nasal spray
4. Steady and Predictable Demand of Flu Vaccine 4. Brand Awareness
External
Opportunities Threats
1. Wholesalers, retailers, online marketplaces 1. Competitors
2. Global partnerships with other companies 2. FDA
3. Insurance Companies 3. Public Liability/Contamination
4. Research and Development 4. Oversupply of products