Flumist case study

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  • Medimmune-Flumist

    TEAM # 1Nahan PSonima P PPrashantNikhil P VJithin Prabha P

  • PositioningFor healthy people aged 5 49 who value health, dont like shots, and want to live life to the fullest.Flu Mist is an easy and painless way to prevent the flu.because it eliminated the needle and developed a nasal-spray vaccine thats 90% effectiveEven though the virus in LAIV is attenuated (low in virulence), it is still a living virus, and may cause an infection with complications in people with weakened immune systems or other underlying medical conditions so it is better to avoid those groups.

  • Pros Emphasizes benefits Differentiates from competition Shows product is unique Targets FDC permitted market Reaches personal values of a full life Communicates easily

  • FluMist is recommended for -All healthy, non-pregnant persons age 49 yrs and younger who want to reduce the likelihood of becoming ill with influenza, or of spreading it to others who meet any of the criteria listed below Working or living with at-risk people as listed in the section above.Healthcare personnel or other persons who provide direct care to at-risk peopleHousehold contacts and out-of-home caregivers of children age 059m.Travelers who may be among people from areas of the world where there is current influenza activity Students or other persons in institutional settings

  • FluMist is not recommended for - children
  • FluMist is not recommended for - Children or adolescents receiving aspirinPeople with a history of Guillain-Barr syndrome , a rare disorder of the nervous systemPregnant womenPeople who have a severe allergy to chicken eggs or who are allergic to any of the nasal spray vaccine componentsIt is possible for individuals vaccinated with FluMist to spread the virus to others for up to 21 days after vaccination. For this reason it is recommended that those vaccinated with FluMist avoid close contact with individuals with weak immune systems during that time.

  • Positioning #1For children who hate getting sick or getting shots.Flu Mist is an easy and painless way to prevent the fluIt eliminate the needle and developed a nasal-spray vaccine thats proven to be effective.ProsEmphasizes painless deliveryDifferentiates from competitionShows product is uniqueConsOnly targets ages 5 18Doesnt reach personal valuesEfficacy not resonating

  • Positioning #2working professionals with no time to be sick,FluMist is a fast way to put the flu out of businessbecause flumist intranasal vaccine is the modern, powerful replacement for the flu shot.ProsEmphasizes illness avoidanceDifferentiates from competitionShows product is uniqueReaches personal values of power and controlConsTargets only portion of total market, predominantly middle-aged menEfficacy not mentioned

  • Positioning #3For healthy people ages 5-49 who dont have timeFluMist is innovative, effective, and convenientbecause its fast, painless, and can be administered wherever you are.Pros Targets total marketable range Lists product benefitsCons Doesnt reach personal values Not focused

  • Target marketHealthy 5 49 yrsFDA only approved this range

    10% currently receive flu shotsSpeculation: live viruses more effective , At least that of other flu vaccine

  • Advantages Prevent flu Important benefits, but provided by all leading competitorsBenefits both important and differentiated from competitors Painless delivery Nasal spray ConvenientFeatures distinctive to brand, but do not drive consumer preference Live virus Innovative, PPE (Personal protective equipment) not required

  • Disadvantages For comparison, only Sanofi-Aventis's injectable influenza vaccine is approved for children 7 months of age and older FluMist is approved after the second year, and other injectable vaccines from four years of age onward. Injectable influenza vaccine approvals have no upper age limit, while FluMist has not yet been tested or presented for FDA approval for use by persons 50 or older. FluMist is approved for individuals from 2 years to 59 years of age in Canada. High cost of production

  • Pricing Strategy

    years 2003-04 2004-05 2005-06 capture rate25%40%60% customer available3,975,0006,360,0009,540,000Doses avail5,000,0006,000,00010,000,000Product cost$15$12.5$7.5Unit sell price$20$20$20unit profit$5$7.5$12.5Selling profit$19,875,000$47,700,000$119,250,000Advt.$30,000,000$20,000,000$20,000,000Net income-$10,125,000$27,700,000$99,250,000

  • Launch StrategyHealth-care professionals Engage consultant sales force for face-face contact Provide incentives to physicians to use product on trial basisMajor corporations Provide quantity discounts to major corporations that provide flu shots to employeesGeneral advertising Market via magazine ads to target segments Get brand recognition

  • Advertising SamplesAppeal to different populations within target segmentChildren/TeensParentsStudents/Young AdultsWorkforce/Professionals

  • Advertising Sample 1Dont get shot.This ad targets the young adult and student populations who are familiar with rapper 50Cent. 50Cent is famous for being shot 9 times and surviving. Target publications include magazines with a music and entertainment focus.

  • Advertising Sample 2Because shaking hands is your business, protecting you is oursThis ad targets the business environment by highlighting how the flu virus is spread: shaking hands. Business professionals, even those who are healthy, are at risk for catching the flu virus. Target publications include professional journals and magazines.

  • Advertising Sample 3This ad targets the children and student populations.

  • Advertising Sample 4This ad targets families - at risk for catching the flu virus. Target publications include magazines and other print and visual medias.

  • Advertising Sample 6Avoid the flufeel great.

  • Advertising Sample 5This ad targets all categories of population - at risk for catching the flu virus. -act as a warning .Target publications include -All kind of print and visual media -Not focused

  • THANK YOU.

    *Assumptions: Capture rate is estimated and increases in the third year (05-06).Doses available is estimated based on the production capacity that the company is developing.Product cost is proportional cost and doses available in the first year.Selling price is kept flat to be conservative.

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