case review

Short Cycle Preparation Process

Who: Roger Sampson: Marketing Manager or VP marketing

What: Immediate issue: product positioning for FluMist. More underlying issues: setting price for FluMist, planning optimal advertisement, preparing for the launch of the product.

Where:The product was first to be launched in the US market.

Why: The US market lacked an effective and innovative flu vaccines providing a gap that could be filled by FluMist. FluMist was the first of its Kind flu vaccines that was created using an active flu virus that is heat sensitive. The creativity behind the vaccine was that people could be injected with a Live attenuated influenza vaccine that died once exposed to the body temperature of the individual. As a result, the virus in the FluMist dies and the patient cannot contract flu. The recipient would then develop immunity which makes it possible for the patient to fight flu infection.

When: There has been lacking an appropriate vaccine for flu in the US. MedImmune filed for approval by the FDA in 2000 hoping to receive the approval halfway into 2003 which would then make it possible for the company to meet the demand for a flu vaccine in the flu season of 2003-2004.

How: The analysis will follow an analytical perspective which would seek to look at the data presented in the case and how it relates to the development of the product. Additionally, the analysis will look at the factors affecting the business of the company. the conceptual approach will look at the regulatory framework and how this might have affected or would affect the company and its new product. The logical analysis focuses on the sequence of events and how they impact on the opportunity of the company.

Long Cycle

SWOT

Strengths

· Innovative product allowed MedImmune to take market leadership and topple competitors.

· High capitalization made it possible for the company to invest in a new line of vaccine. The company also has a large workforce providing labor to meet the requirements for the anticipated demand during the flu season of 2003-2004.

· Cheap product: Flu vaccines are inexpensive to make thus transferring them to the customers at cheap prices which makes it easy for insurance companies to cover customers.

· Patent: with a patent running through 2018, the company will be able to reap maximum benefits from the innovation in FluMist.

· Acquisition of Aviron: the acquisition of Aviron the originator of FluMIst gives Medimmune a competence in flu vaccine designs which represents potential for growth.

· construction of a new facility for FluMist production means that the company has ready resources for an uninterrupted manufacturing of the FluMist Vaccine.

· increased capacity to produce FluMist means that the company will be able to meet rising demand for flu vaccines.

Weaknesses

· In ability to meet demand for the flu season owing to slow approval process.

Opportunities

· High demand for the flu vaccine: CDC recommended that people older than 50 years and children below age 5 should be targeted for vaccination. Additionally, people in the age bracket 5-49 suffering from other health issues are high risk and should receive vaccination.

· The sales of FluMist could reach up to 1 Billion USD worldwide. This is a substantial amount considering that the total revenues for all player’s amounts to 14.6 billion USD.

· The direct marketing method is persuasive and may lead to growth of sales for the company.

· The low pricing is competitive and may make the Flu Mist vaccine attractive to customers.

Threat

· Government regulation: vaccine and drug production is subject to food and drug administration approval. The process is bureaucratic and red taped which takes precious time that the company could have used to meet the demands of the market.

· Competitors such as Wyeth are well endowed and may soon be competing with MedImmune in producing innovative Vaccines.

· Marketing costs: a direct to customer advertising strategy may be expensive which may lower the profits generated by FluMist.

· The R&D investment required for production of vaccines such as FluMist is costly.

Porters Forces

Rivalry: this force is medium-high as there are other players with high capitalization that is adequate to invest in innovative vaccines.

Buyer Power: this is low because there is a high demand for effective flu vaccines orchestrated by an increase in the number of people requiring the vaccine. Currently only Medline has the knowhow to produce the innovative FluMist. This force could also be medium because there is the risk that insurance companies may decline to cover the product.

Supplier Power: supplier power is low because the companies are in control of the supply chain by selling directly to doctors and hospital organizations.

Threat of Substitution: only MedImmune has the ability to produce an innovative vaccine such as FluMist. As a result, it will not be easy for competitors to substitute MedImmune.

Barriers to entry: this is high for small firms because the pharmaceutical industry requires a hefty investment in R&D and also in the labor force, which may be impossible for small firms considering that the existing companies have the ability to attract and retain top talent.

Alternatives/Options

Functionality: when positioning a new product such as the FluMist which is technology based. The company should focus on letting the customer know what the product does. For instance, vaccines have previously been administered through injections now the company can market its product as an injection free but spray vaccination.

Differentiation: because the vaccine is a commodity, the organization should come up with ways and strategies that lets the customer see the difference or uniqueness of the product. It is worth to note that previous vaccines required to be refrigerated while the FluMist will need to be frozen. Additionally, the fact that it can be packed in a spray can makes it even more different.

Relevance: when positioning a product based on relevance the criteria is to ensure that the best quality of the product is communicated to the customer. For instance, when positioning FluMist, the marketing manager should focus on the effectiveness and ease of use of FluMist.

Competive Price Positioning: the low pricing strategy will be crucial in attracting the sales of the product. It will give the company an opportunity to show the effectiveness of the product.

Decision Criteria

The positioning that brings the most positive results will be chosen for future exploration and subsequent application. Functionality will however, be effective for this product because it is a new product. Positioning will explain to the customers what FluMist is and how it is different from other employees.

Qualitative research tools such as in-depth interviews and focus groups with healthcare Practitioners and consumers will be vital in assessing the strength of the positioning strategy. Quantitative tools such as surveys and questionnaires will also be crucial in the assessment effectiveness of the above positioning strategy.

There is a huge market for Vaccines in the United States around the World. FluMist stands out because it does not have to be injected like the traditional vaccines following that it can be inhaled through spraying. The fact that other players have not discovered the technology of Live Attenuated Influenza Virus to make vaccines means that the company can take control of a huge market share. This technology also provides a different approach because it creates immunity where resistance to traditional vaccinations may have occurred.

Decision: functionality positioning that builds on competitive pricing will be ideal for FluMist because it brings the best features of the product as a new innovative and affordable product.

Additional information

I would have wanted to know how the company conducted its market research i.e. the tools the company employed for the market research.

Assumptions

The underlying assumption is that the company received the approval from the FDA. Additionally, another assumption is that the product launch was successful and the product was accepted