Accordingly, WLI also had two options of marketing budget allocations, and these options were closely associated with two options of pricing strategy. In other words, stopping smoking reduced the amount of nicotine, and made the smokers desire cigarettes to compensate for nicotine needed for maintaining the level of it.
Second option would be to concentrate on promotion and personal sales. There were two options which WLI executives should make a choice before launching the product.
This estimation indicated huge potentials in Western Europe market, and WLI could export some of its products to the Western Europe market. Niconil seems to have competitive advantage over the current competitors so try to eliminate side effects and guarantee better cure in the future.
Niconil would be the first patch-type product in the smoking cessation market in Ireland. That is, the total potential market for smoking cessation products was 0.
Breakeven analysis would be very helpful for examining these two options. This support program could be sold separately at additional cost or presented free of charge when consumers buying Niconil patch products.
In addition, WLI could also extend their business to other European countries based on a new Niconil machine which could produce 14, units per month. This support program could be sold separately at additional cost or presented free of charge when consumers buying Niconil patch products.
If WLI intended to get short-term profits in Irish market, alternative 2 would be more reliable choice than alternative 1. Because total expected unit sales would be much higher than breakeven point, considerable profits might be easily obtained.
As a result, Niconil advertising could not be reached to target consumers directly, but to doctors and pharmacies indirectly through medical magazines. In addition, WLI also took into consideration a direct mail campaign targeting 2, GPs in Ireland, and a variety of public relations campaign.
While existing smoking cessation products of the other companies had not been successful due to the concerns about negative side effects, Warner-Lambert executives had an optimistic view that Niconil would be recognized as a safe and effective product by prospective consumers.
Advertising and other marketing strategies, such as public relations and sales promotions, will be examined closely related with the discussion of pricing strategies. This breakeven point was much higher than the expected unit sales of Niconil 64, units.
This option would be useful when WLI targeting current large segment 37, of the market, and pricing Niconil at higher price. Based on adopting this alternative, marketing budget could be reduced to the considerable extent, because WLI should concentrate on personal sales and promotions rather than on advertising and public relations.
Although considering in selling the support program at higher price, it would be extremely difficult to reduce the breakeven point level to the same level of expected unit sales with this pricing option. Although there had already been another nicotine-replacement product, Niconil would be the first patch-type product in this market.
WLI assumed that estimated unit sales in Western Europe would increase as much as 25, units per year.
One option was to concentrate on doctors prescribing Niconil, while the other option was to distribute support programs primarily to pharmacies.
There were still important factors which should be considered seriously. If taking those people into account, the expected unit sales would increase.
In addition, WLI also took into consideration a direct mail campaign targeting 2, GPs in Ireland, and a variety of public relations campaign.
It would be useful when WLI redefining target market as a much smaller one. Threats High cost of purchasing new machine to increase production. If they presented support programs free of charge, the price of patch products would go up beyond the normal level.
Product Evaluation Niconil As known generally, it was nicotine that resulted in addictive behavior to smoking. Advertising and other marketing strategies, such as public relations and sales promotions, will be examined closely related with the discussion of pricing strategies.
In terms of cost and benefit, support programs could not be presented free of charge. As shown above, breakeven point calculated was much smaller than total expected unit sales. That is, the total potential market for smoking cessation products was 0.Case Analysis—Warner-Lambert Ireland: Niconil Executive Summary Warner-Lambert, an international pharmaceutical and consumer products company in Ireland, planned to launch a new product in called Niconil which was made for those people who would like to quit smoking.
Essay Caso Warner Lambert UJRRMER-LnmBERT IRELHMO: NICONIL Declan Dixon, director of marketing for Warner-Lambert Ireland (WLI), examined two very different sales forecasts as he considered the upcoming launch of Niconil®, scheduled For January Warner-Lambert’s Niconil was the product focusing on the addictive aspect of smoking.
That is, Niconil was a nicotine-replacement product, and could be used as a substitute for cigarettes.
Although there had already been another nicotine-replacement product, Niconil would be. Warner-Lambert Ireland: Niconil Questions. Write a substantive answer to each question, while citing relevant case data to support your answer, as well as any marketing strategy theory you have learned.
Warner-Lambert Ireland is an international pharmaceutical and consumer products company. Its product portfolio includes Dentyne chewing gum, Listerine mouth wash and Hall’s cough drops. It was going to launch Niconil in the market. Warner - Lambert Ireland: Niconil Summary Warner-Lambert Ireland is an international pharmaceutical and consumer products company.
Its product portfolio includes Dentyne chewing gum, Listerine mouth wash and Hall’s cough drops.Download