Propecia TM : Helping Make Hair Loss History

1. Analyze case using 4C framework: Customer, Competitor, Company and Context.

CUSTOMER: There is a huge potential customers of balding men in United States,

around 40 millions.

COMPETITORS: Different competitors of Propecia includes different solutions for

Hair loss i.e. Hair replacement surgery ; Mechanical Solution; Tropical Inventions,
Rogaine. Hair loss market total annual sales $1.5 billion, Average spending of a bald
men towards each solution is shown in table
Hair loss solutions & Average Spending by customer

Hair replacement $18000

Tropical $46000
Mechanical $10000
Popecia(as expected) $18000

COMPANY: Propecia is a market challenger. Being a consumer driven product, it

has the potential to treat Male Pattern Hair Loss (MHPL), giving vast opportunity to
Merck & Co. to enter into large and underdeveloped area. Merck & Co. are going for
concentric diversification with the launch of Propecia

CONTEXT: Propecia, a new drug for hair restoration is about to be launched in

the market. Currently, it can be purchased only via physician's prescription.
Earlier similar products like Rogain, failed to achieve the target by marketing it
directly to the physicians. So there is a need of grassroot marketing by
targeting bald man. This can be done directly marketing propecia to bald
males or through buying decision initiators like barbers or buying decision
influencer, Bald man’s wives. There is also a regulatory change by FDA,
which made advertising of prescription drugs to consumers more feasible.

2. Identify Decision Problem clearly.

The main decision problem with Propecia is deciding the marketing strategy for the
product. Merk & Co. had to decide the advertising strategy among 3 available
options: Product claim, Reminder, Help-seeking. A good marketing strategy is
required as lots of competition exist in the market for Hair loss.

Another matter of concern with Merk & Co. is to establish propecia’s brand
positioning.

There is a huge lag between Consumer behaviour towards MHPL and Propecia
required consumer behaviour. Consumer waits for long duration to get the treatment.
While Propecia works if problem is detected in initial stages. There are also cultural
and social factors which prevent male suffering from MHPL to take treatment.

3. Use information to develop at two alternatives to solving the problem.

Support each alternative based on case evidence.
Proper consumer segmentation and marketing of Propecia
4. Take a position / decision from the alternatives by using an integrated
approach. Justify decision clearly based on interpretation of case facts by
understanding their interdependencies.
Merk & Co. should adopt Direct 2 customer marketing strategy by selecting proper
market segment. DTC is important because most health insurance plans didn’t cover
medication for hair loss. Market segment is measurable as it includes malewith hair
loss especially, caucassian man. It is susbstantial as it is large, 10-12million, which is
large enough for Merk & co. to earn profit. This segment is easily accessible,
differentiable and actionable. Propecia marketing should sensitize people for hair
loss so customers can consult in early stages of their hair loss. Also one-third of
Caucassian population think that this problem is inevitable. Sensitizing these people
towards Hair loss treatment will increase customer base exponentially Proper
advertising may change perception of product performance and hence
can attract more people towards it. Brand Equity can be developed: By transferring
right meaning to customers through marketing activities.