PHARMACEUTICAL PRODUCT LIFE CYCLE STRATEGIES

I. INTRODUCTORY STAGE
Drug companies normally pursue an investment-spending strategy in creatively
promoting and distributing the new product.

THE USUAL TERMS AND CONDITIONS ARE APPLIED WHEN THERE

IS:
An accepted industry practice for new drug products is:
--is a period of very low sales performance during the first few months to one year or
more after being formally introduced into the market depending on the degree of
awareness level, acceptance and actual product trials

 Reorder
 When there is steady demand being realized
 Sales of the new drug product has greatly improved beyond reasonable doubt

THE PROMOTIONAL ACTIVITIES:

A NEW ETHICAL DRUG PRODUCT LAUNCHED IN THE MARKET IS
NORMALLY INTRODUCED TO:

 Sampling
 Detailing through brochures
 Leaflets
 Promotional paraphernalia

PHARMACEUTICAL PRODUCT LIFE CYCLE STRATEGIES

II. GROWTH STAGE
-Either in branded or genetic forms or introduced as an ethical,OTC, or proprietary
drug product.

A new drug product, borne out of research or an improvement of an existing product,

or simply the exact replica of other drug products of the company, or those of
competitors but packed and marketed differently.

PHARMACEUTICAL PRODUCT LIFE CYCLE STRATEGIES may be

characterized by several stages as follows:
-Wide acceptance, patronage and repeat sales in bigger volumes has been
tremendously gained from consumers.
-is a period of increasing sales and profit performance because the new drug product
has entered the growth stage

1. INTRODUCTORY STAGE

2. GROWTH STAGE

3. MATURITY STAGE

4. DECLINE STAGE

REASONS FOR PURSUING AN INVESTMENT-SPENDING STRATEGY:

1. To preempt entry of similar competing products.

2. To maintain or strengthen its market growth and share in the specified market
segment thereby making it doubly difficult for competition to come in or dislodge the
product.

THE MAJOR STRATEGIES EMPLOYED BY DRUG COMPANIES TO

SUSTAIN ITS RAPID MARKET GROWTH IN THE TARGET MARKET
SEGMENT ARE AS FOLLOWS:
3. Lowering prices to previous levels.

4. More aggressive and proactive promotions efforts.

5. Fine-tuning product's position in the market or repositioning competitor's products

in the minds of target consumers.

6. Additional logistics support.

1. Continuous improvement or innovation of the products quality.

2. Entering completely new markets, new segments, expanded distribution channels,

more incentives for trade outlets to carry and endorse the product to clients.

III. MATURITY STAGE

THE STRATEGIES FOR DRUG PRODUCTS IN THE MATURITY STAGE
ARE SUMMARIZED AS FOLLOWS:
1. Roll-back of prices
2. Increase advertising and other promotions support for the product.

3. Increase R and D budgets.

4. Periodically modify the market

IV. DECLINE STAGE

--is a period characterized by the slowing down of product's sales volume reaching a
plateau or remaining at constant volumes.

By:
THE SALES DECLINE MAY BE ATTRIBUTED TO A NUMBER OF
FACTORS SUCH AS:
5. Adding improvements to expand the product's usefulness, safety, or convenience.

6. Implementing quality improvement towards increasing the performance of the drug

product, in terms of faster absorption in the body's system.

7. Offering new or improved services to valued clients.

1. Looking for new ways to increase product usage among existing customers.

2. Looking for new users and market segments.

3. Repositioning the brand to appeal to a larger or faster growing segment.

4. Improving the attractiveness of the drug product by means of a new look in

packaging appropriately suited to the needs and wants of specific target markets.

 Rapid technological advances

 Keen competition as demonstrated by the mushrooming of local drug
companies vying for a share of the market after the enhancement of the
generics law
 Changing consumer preferences for tastes, flavors, colors, adherence to
safety and efficacy
 Price consciousness due to inflation and deteriorating purchasing power

- a period characterized by continuos drop in sales of most product formats and

brands, at low level for many years.
THE MAJOR STRATEGIES EMPLOYED FOR DRUG PRODUCTS IN THE
DECLINING STAGE ARE AS FOLLOWS:
4. Reduce promotions and overall marketing efforts and promptly re channeling
resources to drug products either in the introductory or growth stage.

5. Replace weak products with similar or related generic names or an improved

version under a new brand name and new positioning scheme.

6. Sell drug product to another company or simply liquidate it at salvage value.

 Physicians
 Dentist
 Pharmacist
 Allied professionals

PRODUCT
LIFE CYCLE
1. When sales and profits continue to decline, companies immediately withdraw from
the market, phase-out the drug product to avoid further loses, in certain geographical
areas or nationwide.

2. Reduce the number of product offerings, concentrate on potential formats, sizes

ad supply.

3. Discontinue operations in smaller market segments and marginal trade channels.

 Consignment or initial stocking-up to target outlets

 Through an inventory financing scheme of paying only actual units consumed
and stocks replenishments