Taking the headache out of the new product launch

Client Needs

Our medical company client wanted to launch their first pharmaceutical product. Prior to the launch, there was no marketing resources available and no firm decision on a channel distribution strategy.

Key Issues

Distribution channels
The key challenge was accessing distribution channels to launch the product in a market dominated by many competitors with established relationships.

Consumer involvement
Engaging the consumer in the purchasing decision process was difficult, particularly in a highly cluttered environment.

Solution

Distribution channels
After researching different distribution channels and markets, BlueFrog recommended changing the distribution channel from hotels to pharmacy. BlueFrog Marketing also recommended an increase in price from $9.95 to $12.95 as research suggested higher price point made no different in minds of pharmaceutical consumers.

Promotion
Launching the product in Victoria prior to a national launch, helped to gain useful knowledge about consumer dynamics and purchasing behaviour. Point of sale promotional material was developed for counter top displays across pharmacy channel to promote brand awareness.

Targeted consumer promotional activities executed included; point of sale promotions, direct marketing and launching the product in the “world’s longest lunch” event and undertaking consumer sampling trials in Men’s Health magazine and other PR events.

Results

After a successful launch of Alcodol the product was the third largest new pharmacy product in 2002 and the client achieved sales of $2 million after the first year of the launch.

The client achieved a Return On Investment of 23 to 1, as a result for one campaign which was aimed at promoting Christmas buy-ins for the pharmacy channel.