The marketing plan on levemir

The merchandiseing plan on levemirThe merchandiseing plan on levemir1.0 Executive SummaryThe food marketing plan on Levemir for the Indian market presents the approach to increase market fortune of Levemir in basal analogue to 50% and in the basal insulin categories to 30% by 2012. We think that this target is achievable beca utilization of improving economy, market exploitation and our emulous advantage. In doing so we would retard the growth of Lantus and upgrade our existing patients on Insulatard (basal human insulin) to Levemir and would position Levemir the preferred basal insulin of choice for twain type 1 and type 2 diabetes.2.0 Corporate visual sensationWe give be the worlds leading diabetes care lodge.We will offer harvest-times and services in other areas where we loafer own a difference.We will achieve competitive business resultsA job here is never just a jobOur values are expressed in all our actionsOur history tells us, it can be doneThere was no mission st atement but Novo Nordisk (NN) had the vision statement as mentioned above. Ideally a mission statement should crosscut the firms priorities in terms of customer focus, value provided, market scope, guiding values and core competencies. The vision statement of NN is fair enough to clarify all these aspects, whitethorn be they could have added or modified more about their core competencies.3.0 Current foodstuffing SituationInformation about Indian Pharmaceutical, Diabetes Care and Insulin market is described in the adjunct p 24.3.1 The Basal Insulin Insulin Analogue MarketThe insulin analogue market is growing at 27%, predominantly contributed by the international pharmaceutical firms including NN, Eli Lilly and Sanofi-Aventis (fig 1). NN is leading the insulin analogue market with 54% market share followed by Eli Lilly and Sanofi-Aventis (fig 2).Figure 1 Insulin Analogue Market GrowthFigure 2 Insulin Analogue Market ShareBasal Insulin market can be categorised as animal, human a nd analogues and it offers a total market of Rs.58 crores and growing at 57%. In terms of volumes the total basal market is 810.4 one million million units (MU) and NN is the market leader in this segment with 46% market share. However, this share is more often than not because of high contributions coming from human basal. In the category of basal analogue, Sanofi-Aventis is a clear leader with 77% market share and NN with 23% market share (fig 3). The key market insights from the basal analogue segment are as followsThe total basal analogue is worth Rs. 58 croresLantus (insulin glargine) Rs. 45 croresLevemir (insulin detemir) Rs. 13 croresLantus has 77% market share and Levemir has 23% market share.Figure 3 Basal Insulin Analogue Value Market Share3.2 Internal Sales Trend sum total gross sales in 2007 and 2008 were Rs. 309 crs (23.6% growth) and Rs. 363 crs (17.5% growth) respectively. With respect to Levemir, sales were Rs. 8.88 crs (94% growth) and Rs. 16 crs (81%) in 2007 a nd 2008 respectively. The sale of Levemir until YTD November 2009 is 28 crores. The planned growth for Levemir next year (2010) would be 70%. ingress of Levemir PenFill will further strengthen Levemirs stand against Lantus.3.3 External EnvironmentIndia is a growing economy with a stable government and Indian Pharmaceutical Market is also growing rapidly at 15%. Moreover, India has the highest number of diabetes population (51 million) in the world and is growing with westernization. Hence, its a dream of every Pharmaceutical company with diabetes products to be present in India. High market attractiveness and no barriers to entry so number of players in diabetes and insulin are growing. NN is focussed in fault the patients to insulin analogues from human insulins as the analogue market has barriers to entry due to patents in place, less competition, no price war and has high profit margin. It is discussed in expound in the accompaniment p 27.3.4 Market Size (Patient Population)I ndia has the worlds largest population of people with diabetes, with an estimated 51 million people suffering from the disease. According to the International Diabetes Federation (IDF), India is evaluate to have 87 million people ailing from diabetes by 2030. India is considered as the diabetes capital of the world with a patient population of more than 50 million. Diabetes strikes the Indian population a decade earlier than the west. The reasons for the pandemic are attributed to genetic predisposition, changing lifestyle and urbanization.Treatment data (Table 1) suggests that out of 51 million, only 13 million people are diagnosed with diabetes but only7 million people are on medicationOnly 1.7 million are on insulin alone or in combination with OADs3.5 Competitor Mapping AnalysisThe main competitors for NN India areEli LilySanofi-AventisWockhardtBioconUSV3.6 Novo Nordisk SWOT Analysis (Internal Audit)Table 4 NN in the insulin marketStrengthsDiabetes is the core focus since 1920 s esp. Insulin therapyStrong RDWell established in Indian marketDeveloped the insulin market in indiaContinuous innovationsStrong fusion with the Key spirit Leaders in diabetesLarge sales force 500 dedicated for insulin productsWeaknessesLantus was the first basal analogue to launch in India, Levemir is not able to grow fasterHigher attrition rate in the sales force crossways are costlyOpportunitiesIndia is the diabetes capital of the world with 51 million diabetic population Huge market for growthDevelop the analogue marketThreatsEntry of local playersLantus patent expired launch of biosimilars, price bang-upNew therapeutic product launch such as GLP-1 analogues, DPP-IV inhibitors3.7 Growth StrategyAs per the Ansoffs matrix, NN is gaining a new market for analogues. Hence, it is in the market development phase. As the human insulin market is crowded by generic players and more local players are entering due to market attractiveness and no barriers to entry, NN is focussing on creating and developing a new insulin analogue market so that the patients can be shifted to insulin analogues. The model is depicted pictorially in the appendix p34.3.8 Portfolio AnalysisAmong the various diabetes care products, the insulin analogues including NovoMix, Levemir and NovoRapid are growing very fast and star as per the matrix. The human insulins (Mixtard, Actrapid Insulatard) are cash cows. The only OAD of NN is in the click stage and this maybe due to that we are not focusing in this product as we want to grow the insulin analogue market. As per NN strategy, we want to develop the analogue market, hence heavy investment and more noise level would be the key to our success.4.0 Marketing ObjectivesLevemir the preferred basal insulin of choice for the treatment of both type 1 2 diabetes.Acceptance of Levemir as at a time-daily insulin by the doctors.To increase the value market share of Levemir in basal analogue category to 50% in next 3 years.To achieve a value market share of 30% in the basal human insulin category by 2012.To make Levemir a 30 crores brand by 2012.To launch Levemir Penfills by March 2010.To counter the growth of Lantus.To upgrade 50% of the patients on Insulatard (human insulin) to Levemir by 2012To increase NovoRapid sales by copublicity with Levemir.5.0 Marketing StrategyThe complete range of insulin analogues, along with various delivery devices, in the Indian diabetes care market will be useable only from NN. With NovoMix we will drive the analogue category in India which is predominantly a premix market (80%). Levemir will be a fictitious character of this intense offering, to shake up the market share occupied by Lantus. Being the only company with a full analogue portfolio, gives us the aptitude to initiate people with diabetes on a full analogue basal oral regimen.Levemir would be placed in the minds of the customers as the basal insulin of choice for intensive treatment for type 1 and type 2 diabetes. In both type 1 and type 2 patients, Levemir will be a once daily dose available in FlexPen.5.1 SegmentationPrescribing doctors were divided into different categories on the basis of their prescription behaviour, qualification and influence on other peers, inn or key decision maker in large institutions of repute (table 6). Prescription pattern was found out by market research (external agency) and national data obtained from the sales team.The number of sales call, expenditure on the Dr for research purpose, international sponsorships, exposure to international forums and advisory board membership would vary for from each one category of physician.Levemir prescription would be generated primarily from the A and B class doctor. Hence, segmentation will help the sales force to focus better on the key customers and less cannibalisation into premix analogue segment.5.2 TargetingPatients Levemir will be targeted at the following categories of patientsType 1 Diabetes For intensive interpretTy pe 2 Diabetes For patients on basal-oral therapyThe main patient benefit will be improved temper and precaution coupled with no undesirable weight gain compared to Insulatard and Lantus. These benefits will be offered together with a far superior delivery device the FlexPen.Majority of the patients will come from basal-bolus to Levemir. As can be seen from the figure 5, 40% of the patients will come from basal-bolus therapy followed by basal only (20%). It will be important to focus on these two segments to ensure rapid market penetration.Prescribers Levemir will be targeted at the following categories of doctors and prescribers (table 7)The target doctors for Levemir will be Diabetologists, Endocrinologists, Cardiologists and Physicians particularly Lantus prescribers. Key customers are described in detail in appendix p32.5.3 PositioningThe product proposition or the key to owning the post in the doctors mind is based on better glycaemic control and positive differentiation of Levemir over both Insulatard and Lantus. The positioning line for Levemir in India will be as followsAdd Levemir once-daily, reduce weight gainWeight neutrality assists the physician to achieve optimal control with fewer hypoglycaemic episodes and no undesirable weight gain. Levemir once-daily with OADs has to be ingrained in the doctors mind.Key messages The key messages will aim to reinforce good glycaemic control and weight neutrality would be the key differentiator from LantusWeight neutral propertyGood glycaemic control with once-daily dosing with OADs.Controlling Diabesity leads to better quality of life and safetyLevemir together with NovoRapid and NovoMix 30 are the only insulin analogues available in the advanced delivery system the FlexPen.Ultimate ControlKey Messages are described in detail in the appendix p 35.5.4 Critical Success FactorsTo block the growth of Lantus that has now been in the market for over 5 years jazz neutralize the entry of newer players such as Ap idra (Sanofi) and Glargine from Wockhardt and Biocon.Ability of NN field force to effectively create awareness and brand acceptability for Levemir among prescribers will be pivotal in establishing Levemirs position in the market.The benefits of basal-oral in type 2 and basal-bolus therapy in type 1 patients will have to clearly emerge. This will help in reinforcing the benefits of Levemir and strengthening the brand among the doctor and patient communities.Acceptance of the price point by the prescriber and the purchaser/ patient is critical for Levemir to gain prescriptions as well as market shares.Clear targeting of Levemir to Class A B doctors.Successful launch of Levemir Penfills in March 2010.6.0 Marketing Mix6.1 ProductLevemir is a solution for stab that contains the active substance insulin detemir. It is available in pre-filled pens (FlexPen). Levemir is used to treat adults, adolescents and children over the age of six years who have diabetes. The medicine can only be ob tained with a prescription. Levemir is imported to India from the manufacturing plant in Copenhagen (Denmark).Levemir is an insulin analogue prescribed to patients with diabetes for meeting the basal insulin requirement. Other insulin analogues of NN are NovoRapid and NovoMix 30. All the insulin analogues including Levemir are patented product of NN.6.1.1 Product Life Cycle ManagementSource mbarreiro.wordpress.com/Levemir was launched in May 2006 in the Indian market. Levemir was second to Lantus in basal insulin analogue category in India. Although Levemir is 3 years old in Indian market, still it has not grown as expected compared to the global market. As per the product life cycle graph, Levemir is in the initial part of growth phase, needs more attention and intensive promotion to reach the peak.Hence the focus will be on the private biggest benefit of Levemir i.e. Less undesired weight gain and Once-daily therapy with OADs in all our communications. This will ensure that Levem irs key differentiator of Weight Advantage is completely silent and appreciated by the prescriber base. The integration of Levemir with NovoRapid will be extremely important to establish Levemir as the key part of basal-bolus therapy. This will be achieved with joint promotion and communication activities with NovoRapid with the key objective being the importance of basal-bolus therapy in the proper treatment of diabetes.Strong brand showcasing in all reputed diabetes journals, conferences and meetings with leading Key Opinion Leaders endorsements will be the key to success of Levemir so that Levemir reaches the peak of growth phase.6.2 PricePricing in India has to be extremely competitive as it is a very price sensitive market. Pricing here follows certain regulatory procedures. Since insulin falls under the price controlled drugs and pharmaceutical products category there is a maximum selling price which needs to be approved from the pricing authority NPPA (National Pharmaceutica l Pricing Authority). They would evaluate the recommendation on the following parametersAffordability for the heap and criticality of making this product available to all if Life saving (Insulin comes under this category).Manufacturing cost the pharmaceutical company claims to incurCompetitive pricing channel this NPPA gives clear approval based on which a license to market is procured. The following price was approved by NPPA after our recommendation.Product Type MRP (Rs)Levemir FlexPen 988NN is a market leader in diabetes market globally including India and is known for its strong research and development activities. Levemir is an innovative patented product the pricing is based on the value perceived by the customers (doctors). The pricing decision has also been done taking into account on the price of the competitor that existed during launch, Lantus Optiset Pen (MRP = Rs 801).6.3 PromotionNN would watch over both Push strategy and soak strategy as promotional tools. The Push strategy would be through promotional activities target at the prescribers (doctors), whereas the Pull strategy would be through increasing awareness of the end consumer (diabetic patients) about good glycaemic control, less undesired weight gain, less hypoglycaemia and easy to use insulin pens.AdvertisingSales PromotionPublic RelationsPersonal SellingSamplingThe promotional tools are described in detail in the appendix p35.6.4 PlaceDistribution channel structure Levemir will be distributed via wholesalers through our channel partner M/S. Abbott India Limited. There will be no mixture in the distribution channel for Levemir. We will focus on Metros and larger cities to gain market volumes. Levemir will be made available in appoint retail outlets.The pharmaceutical distribution channel in India is described pictorially in figure 7.Figure 7 The Pharmaceutical Distribution Channel in IndiaNote Figures in %age indicate %age of medicines supplied to the entityAcknowledgement I am gra teful to Mr Devdutt Dash, Senior Product Manager Levemir, Novo Nordisk India for providing the market data on Indian Pharmaceutical Industry, Diabetes Care, Insulin Insulin analogues and internal sales data of NN, Levemir and Lantus.7.0 References and Bibliography1. Kotler, P, Armstrong, G, Wong, V Saunders, J. ed. 2008. Principles of Marketing. Pearson Education Ltd Prentice Hall.2. mbarreiro.wordpress.com/3. Roger, J. B. 2nd ed. 2000. Market-Based Management Strategies for Growing Customer Value and Profitability, (Upper Saddle River, NJ Prentice Hall), p.127.4. tutor2u.net/business/strategy/ansoff_matrix.htm5. Wood, M.B. ed. 2007. Essential guide to marketing planning. Pearson Education Ltd Prentice Hall.6. www.financialexpress.com//indias-gdp200910/435703/7. www.IDF.org8. www.novonordisk.com